(navigation image)
Home American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Children's Library | Biodiversity Heritage Library | Additional Collections
Search: Advanced Search
Anonymous User (login or join us)
Upload
See other formats

Full text of "Investigation of concentration of economic power; monograph no. 1[-43]"

^^3d Sessfon^^} SENATE COMMITTEE PRINT 



INVESTIGATION OF CONCENTRATION 
OF ECONOMIC POWER 



TEMPOKAEY NATIONAL ECONOMIC 
COMMITTEE 

A STUDY MADE UNDER TIJE AUSPICES OF THE DEPART- 
MENT OF COMMERCE FOR THE TEMPORARY NATIONAL 
ECONOMIC COMMITTEE, SEVENTY-SIXTH CONGRESS, 
THIRD SESSION, PURSUANT 1?0 PUBLIC RESOLUTION 
NO. 113 (SEVENTY-FIFTH CONGRESS), AUTHORIZING 
AND DIRECTING A. SELECT COMMITTEE TO MAKE A 
FULL AND COMPLETE STUDY AND INVESTIGATION 
WITH RESPECT TO THE CONCENTRATION OF ECONOMIC 
POWER IN, ANP FINANCIAL CONTROL OVER, 
PRODUCTION AND DISTRIBUTION OF 
GOODS AND SERVICES 



MONOGRAPH No. 15f-.17 
FINANCIAL CHARACTERISTICS OF 
AMERICAN MANUFACTURING CORPORATIONS 



Printed for the use of the 
Temporary National Economic Committee 




UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1940 



I^ORTHEASTERN UNIVERSITY SCHOOL of LAW LIBRARY 



TEMPORARY NATIONAL ECONOMIC COMMITTEE 

JOSEPH C. O'MAHONEY, Senator troni Wyoming, Chairman 

HATTON W. SUMNERS, Representative from Texas, Vice Chairman 

WILLIAM H. KING, Senator from Utah 

WALLACE H. WHITE, Jr., Senatoirfrom Maine 

CLYDE WILLIAMS, Representative from Missouri 

B. CARROLL REECE, Representativefrom Tennessee 

THURMAN W. ARNOLD, Assistant Attorney General 

•WENDELL BERGE, Special Assistant to the Attorney General, 

Representing the Department of Justice 

JEROME N. FRANK, Chairman 
•SUMNER T. PIKE, Commissioner, 
Representing the Securities and Exchange Commission 
GARLAND S. FERGUSON, Commissioner 

•EDWIN L. DAVIS, Chairman, 
Representing the Federal Trade Commission 
ISADOR LUBIN, Commissioner of Labor Statistics 
•A. FORD HINRICHS, Chief Economist, Bureau of Labot Statistics, 

Representing the Department of Labor "^ 

JOSEPH J. O'CONNELL, Jr., Special Assistant to the General Counsel 

*CHARLES L. KADES, Special Assistant to the General Counsel, 1(^? 

Representing the Department of the Treasury ^^^ 

Representing the Department of Commerce vSl-^ . 



f 



C3^ 



LEON HENDERSON, Economic Coordinator 
DEWEY ANDERSON, Executive Secreitary 
THEODORE J. KREPS, Economic Adviser 



•Alternates. 



Monograph No. 15 



FINANCIAL CHARACTERISTICS OF AMERICAN MANUFACTURING 

CORPORATIONS 

By 

CHARLES L. MERWIN, JR. 



REPRINTED 
BY 

WILLIAM S HEIN & CO , INC 

BUFFALO. N. Y. 

i968 



ACKNOWLEDGMENT 

This monograph was written 
BY 

CHARLES L. MERWIN, Jr. 

Economic Analyst, National Income Division, Department oj Commerce 
C under the direct supervision of 

ROBERT R. NATHAN 

Chiej, National Income Division, Department oj Commerce 

The Temporary National Economic Committee is greatly indebted 
to the author for this contribution to the literature of the subject 
under review. 

The status of the materials in this volume is precisely the same as that 
of other carefully prepared testimony when given by individual witnesses; 
it is information submitted for Committee deliberation. N^o matter what 
the official capacity of the witness or author may. be, the publication of 
his testimony, report, or monograph by the Committee in no way signifies 
nor implies assent to, or approval of, any of the facts, opinions, or recom- 
mendations, nor acceptance thereof in whole or in part by the members 
of the Temporary National Economic Committee . individually or collec- 
tively. Sole and undivided responsibility for every statement in such 
testimony, reports, or monographs rests entirely upon the respective 
authors. 

(Signed) Joseph C. O'Mahoney, 
Chairman, Temporary National Economic Committee. 

Ill 



TABLE OF CONTENTS 

Page 

Letter of transmittal ^ xi 

Preface xiii 

CHAPTER 1 

Source Materials Utilized 1 

Over-all picture: "Statistics of Income" 2 

Large corporatiors : Standard Statistics composite 5 

Sample of 1 ,300 small manufacturing corporations 8 

Sample of 525 Securities and Exchange Commission registrants 14 

CHAPTER 2 

Profits of American Manufacturing Corporations 17 

General summary 17 

Some qualifications 19 

All manufacturing corporations 21 

Profitability and size 23 

Epstein and Paton affirm otherwise 28 

Officers' compensation a qualifying factor 33 

liarge corporations 36 

Small manufacturing corporations 38 

CHAPTER 3 

Dividends of American Manufacturing Corporations 43 

All manufacturing corporations.-.- 43 

Large manufacturing corporations ■ 47 

The quantitative picture 48 

The controlling factors :. -_ 59 

CHAPTER 4 

Working Capital of American Manufacturing Corporations 67 

Quantitative measures . 67 

All manufacturing corporations ^ 68 

Large manufacturing corporations 73 

Notes payable 77 

Small manufacturing corporations ' 83 

Qualitative measures 86 

All manufacturing corporations 87 

Large manufacturing corporations 92 

CHAPTER 5 

Fixed Capital of American Manufacturing Corporations 95 

Nature and sources of fixed capital 95 

All manufacturing corporations 95 

Large manufacturing corporations 102 

Small manufacturing corporations 105 

Fixed capital uses 114 

All manufacturirg corporations 114 

Large manufacturing corporations 116 

Plant expansion policies 119 



VI TABLE OF CONTENTS 

rHAPTER 6 

Page 

Source and Disposal of Corporate Funds - 123 

Derivation of source and disposal statement 125 

Sample of large manufacturing corporations, 1935-38 127 

Detailed statements for six industries 128 

Twelve largest steel producers 128 

Seventeen largest oil refiners 132 

Eight large bakeries 132 

Seventy-nine tool manufacturers : 134 

Nine brick manufacturers . 136 

Sixteen clothing manufacturers 138 

R^sum6 139 

Principal sources and uses for 47 industries 140 

Two samples of small manufacturing corporations, 1927-36 162 

Small baking corporations , 162 

Eighty-one bakers, 1927-36 162 

Twenty-seven bakers, 1931-36 163 

Small men's clothing companies 163 

Forty-six men's clothing companies, 1927-36 163 

Twenty-seven men's clothing companies, 1931-36 164 

Small furniture manufacturers 165 

Sixty-six furniture manufacturers, 1927-36 165 

Twenty-eight furniture companies, 1931-36 165 

Small stone-clay companies 166 

Seventy stone-clay companies, 192'^-36 166 

Thirty stone-clay companies, 1931-36 167 

Small machine-tool companies 167 

One hundred and eighteen machine-tool companies, 1927-36. 167 

Twenty-three machine-tool companies, 1931-36 168 

Comparison of large with small companies 169 

Summary 172 

Appendix A. Correction for nonreporting of balance sheets in Statistics of 

Income 174 

Appendix B. Companies included in Standard Statistics Co.'s composite of 

financial statement as of December 31, 1938 178 

Appendix C. Description of items used in the Standard Statistics sample of 

400 corporations 182 

Appendix D. Study of small manufacturing corporations 183 

Appendix E. Development of Securities and Exchange Commission data. 196 
Appendix F. Statistical tables for reference use — Sample of small manu- 
facturing corporations 199 

Index - _- 417 



SCHEDULE OF TABLES AND CHARTS 

TABLES 

Pafft 

1. Distributions of fiscal and part-year corporate-income-tax returns, 

as a percent of total sales and of returns filed, by months, 1927, 1930, 

1935 --.--.-- 4 

2. Frequency distribution of size of total assets, Standard Statistics 

composite of 400 corporations, 1927 and 1938 6 

3. Frequency distribution of incorporation date, Standard Statistics 

1927-38 composite of 400 identical companies 7 

4. Accounting period distribution, Standard Statistics 1927-38 compo- 

site of 400 identical companies 8 

5. Industrial, geographical, and asset size composition of original sample 

of 192&, small manufacturing corporations 9-10 

6. Industrial, geographical, and asset size composition of supplementary 

sample of 1 930, small manufacturing corporations 10 

7. Industrial groups of Securities and Exchange Commission registrants 

included in source and disposal analysis 14-15 

8. Ratio of compiled net profit (after tax) to net worth, for total manu- 

facturing and five industrial subgroups, 1926-36 21 

9. Percentage distribution of total manufacturing corporation assets 

held by five industrial subgroups, by periods, 1926-29, 1930-33, 
1934-36 s 23 

10. Ratio of compiled net profit after tax to net worth for total manu- 

facturing, shown separately for income companies and for all com- 
panies, 1936 27 

11. Ratio of compiled net profit to net worth for five manufacturing sub- 

groups classified by asset size, income and no-income companies, 

by periods, 1931-33 and 1934-36.'..- 28 

12. Epstein's sample: Earnings rates, 2,046 manufacturing corporations 

by capital classes, 1924 and 1928 30 

13. Ratio of compiled net profit plus interest to total assets, for total 

manufacturing classified bv asset size, income and no-income com- 
panies, 1931-33 and 1934-36 averages 31 

14. Percentage return on assets by' asset size: Paton's sample 1927-29 

and Statistics of Income universe, J931-36 32 

15. Ratio of compiled net profit plus interest plus officers' compensation 

to total assets, for total manufacturing classified by asset size, 
income and no-income companies, 1931-33 and 1934-36 averages.- 34 

16. Ratio of compiled net profit plus interest plus officers' compensation 

to total assets for five manufacturing subgroups classified by asset 
size, income and no-income companies, 1931-33 and 1934-36 
averages '. _-- 35 

17. Frequency distribution of profit ratio, Standard Statistics composite 

of 400 companies, 1927-38 1 37 

18. Frequency distribution of ratio of net income to capital stock by 

selected industries, sample of small manufacturing corporations, 
1926-36 41-42 

19. Ratio of cash dividends paid to compiled net profit (after Federal ta,x) 

for total manufacturing and five subgroups, income companies 

only, 1926-36 . . 44 

20. Ratio of cash dividends paid to compiled net profit (after Federal ta,x) 

for total manufacturing classified by asset size, income companies 

only, 1931-36 45 

21. Disbursement ratio for total manufacturing including income and no- 

income companies 1926-36 --- 45 

22. Ratio of cash dividends paid to net worth, for total manufacturing 

and five subgroups, 1926-36 - -- 46 

VII 



VIII SCHEDULE OF TABLES AND CHARTS 

Page 

23. Ratio of cash dividends paid to net worth for total manufacturing, 

classified by asset size, income and no-income companies, 1931-36-. 47 

24. Number of corporations payings dividends in each year from 1927 to 

1938 in the Standard Statistics composite of 400 corporations by 

industry l ■ 49 

. 25. Average ratio of common dividends paid to common ^tock and surplus 
for Standard Statistics composite of 400 corporations by industry 
and by periods 1927-29, 1930-33, 1934-38, and 1927-38 50 

26. Average ratio of common dividends paid to common stock and surplus 

for Standard Statistics composite of 400 corporations bv industry 
1927-38 -■"--- 52 

27. Average ratio of common dividends paid to common stock and surplus 

for dividend paying companies in the Standard Statistics composite 
of 400 corporations by industry and by periods 1927-29, 1930-33, 
1934-38, and 1927-38 54 

28. Average ratio of common dividends paid to common stock and surplus 

for the dividend paying companies in the Standard Statistics com- 
posite of 400 corporations by industry 1927-38 55 

29. Frequency distribution of the ratio of common dividends paid to com- 

mon stock and surplus, Standard- Statistics composite of 400 corpora- 
tions, 1927-38 56 

30. Stabilitv of dividend pavments for the Standard Statistics composite 

of 400 corporations, 1927-38 58 

31. Cross-classification of disbursement and liquidity ratios for Standard 

Stitistics composite of 400 companies, 1927-38 61-63 

32. Curre it ratio for total manufacturing and five subgroups, 1926-36 69 

33. Current ratio for total manufactilring classified by asset size, 1931-36- - 70 

34. Ratio of net working capital to capital assets for total manufacturing 

and five subgroups, 1926-36 j 71 

35. Ratio of net working capital to capital assets for total manufacturing 

classified by asset size, 1931-36 71 

36. Current ratio for Standard Statistics composite of 400 corporations, by 

industry and by periods 1927-29, 1930-33, 1934-38, and 1927-38--'. 74 

37. Frequenev distribution of current ratio,' Standard Statistics composite 

of 400 corporations, 1927-38 , 75 

38. Ratio of net working capital to net property account for Standard 

Statistics composite of 399 corporations, bv industry and bv periods 
1927-29, 1930-33, 1934-38, and 1927-38--" 1 76 

39. Standard Statistics composite of 400 companies classified by size of ratio 

of notes paya"ble to notes and accounts payable, and by industry, 
1927-38 - -. 79-80 

40. Ratio of notes payable to notes and accounts payable for Standard 

Statistics composite of 400 corporations, by industry and by periods 
1927-29, 1930-33, 1934-38, and 1927-38 82 

41. Frequency distribution of the current ratio by selected industries, 

sample of small manufacturing corporations 192.5-36 84-85 

42. Ratio of sales to current assets for total manufacturing and five sub- 

groups, 1926-36 ., 87 

43. Ratio of sales to current assets for total manufacturing classified by 

asset size, 1931-36 88 

44. Ratio of sales to inventory for total manufacturing and five subgroups, 

1926-36 . 90 

45. Ratio of sales to inventory for total manufacturing classified by asset 

size, 1 931-36 • 90 

46. Ratio of sales to receivables for total manufacturing and five subgroups, 

1926-36..-: 91 

47. Ratio of inventory to receivables for total manufacturing and five 

subgroups, 1926-36 . 92 

48. Ratio of inventory to receivables for Standard Statistics composite of 

400 corporations, bv industry and by periods 1927-29, 1930-33, 
1934-38, and 1927-38 - 93 

49. Ratios of net worth to total debt, surplus to net worth, and current 

debt to total debt,, for total manufacturing and five subgroups, 
1926-36 97 

50. Ratios of net worth to total debt surplus to net worth, current debt to 

total debt, for total manufacturing classified by asset size, 1931-36. . 99 



SCHEDULE OP TABLES AND CHARTS IX 

Page 

51. Ratio of net worth to total debt for Standard Statistics composite of 

400 corporations, by industry and by periods 1927-29, 1930-33, 
1934-38, and 1927-38 102-103 

52. Ratio of current liabilities to total debt for Standard Statistics com- 

posite of 400. corporations, by industry and by periods 1927-29, 
1930-33, 1934-38, and 1927-38 1 104 

53. Frequency distribution of ratio of capital stock to surplus by selected 

industries, sample of small manufacturing corporations, 1925-36_ 106-108 

54. Sample of small manufacturing corporations classified by size of ratio 

of funded debt to capital stock and by industry, 1925-36 110 

55. Distribution of par and no-par common stock, Standard Statistics 

1927-38 composite of 400 identical companies 113-114 

56. Ratio of capital assets to invested capital for total manufacturing and 

five subgroups, 1926-36 • 115 

57. Ratio of capital assets to invested capital for total manufkcturing 

classified by asset size, 1931-37 115 

58. Ratio of current assets to total capital for total manufacturing and 

five subgroups, 1926-36 116 

59. Ratio of current assets to total capital for total manufacturing classi- 

fied by asset size, 1931-36 117 

60. Ratio, of fixed assets to invested capital for Standard Statistics com- 

posite of 399 corporations by industry and by periods, 1927-38 118 

61. Cross-classification of trend of sales with trend of net property account 

for sales-reporting companies in Standard Statistics sample of 175 
companies, 1927-38 120 

62. Source and disposal of funds, 12 steel producers with assets over 

$100,000,000 based on S. E. C. census of American listed corporations, 
1935-38 129 

63. Source and disposal of funds, 17 oil refiners, based on S. E. C. census 

of American listed corporations, 1935-37 131 

64. Source and disposal of funds, 8 bakers of bread and cake, based on 

S. E. C. census of American listed corporations, 1935-37 133 

65. Source and disposal of funds, 79 manufacturers of industrial machin- 

ery, tools, parts, and equipment, based on S. E. C. census of 
American listed corporations, 1935-37 : 135 

66. Source and disposal of funds, 9 manufacturers of brick and clay 

products, based on S. E. C. census of American listed corporations, 
1935-37 137 

67. Source and disposal of funds, 16 manufacturers of apparel other than 

hosiery and footwear, based on S. E. G. census of American listed 
corporations, 1 936-37 138 

68. Principal sources and uses of manufacturing corporation funds, by 

selected industries, based on S. E. C. census of American listed cor- 
porations, 1935_ 141-142 

69. Principal sources and uses of manufacturing oorporation fimds, by 

selected industries, based on S. E. C. census of American listed cor- 
porations, 1936 ■_ 143-144 

70. Principal sources and uses of manufacturing corporation funds, by 

selected industries, based on S. E^C. census of American listed cor- 
porations, 1937 145 

71. Principal sources and uses of manufacturing corporation funds, by 

selected industries, based on S. E. C. census of American listed cor- 
porations, 1938 . _ . . 146 

72. Source and disposal of funds statement for an identical sample of 81 

small baking corporations, by years, 1927-36 147-148 

73. Source and disposal of funds statement for an identical sample of 

27 small baking, corporations, by years, 1931-36 149 

74. Source and disposa- -of funds statement for an identical sample of 46 '' 

small men's clothing corporations, by years, 1927-36 150-151 

75. Source and disposal of funds statement for an identical sample of 27 

small men's clothing corporations, by years, 1931-36 152 

76. Source ard disposal of funds statement for an identical sample of 66 

small furniture corporations, by years, 1927-36 153 -154 

77. Source and disposal of funds statement for an identical sample of 28 

small furniture corporations, by years, 1931-36 155 



X SCHEDULE OF TABLES AND CHARTS 

Page 

78. Source and disposal of funds statement for an identical sample of 70 

small stone and clay corporations, by years, 1927-36 — _ 1 56-1 57 

79. Source and disposal of funds statement for an identical sample of 30 

small stone and clay corporations, by years, 1931-36 158 

80. Source and disposal of funds statement for an identical sample of 118 

small machine tool corporations, by years, 1927-36 159-160 

81. Source and disposal of funds statement for an identical sample of 23 

small machine tool corporations, by years, 1931-36 161 

CHARTS 

1. Percentage of firms in 1926 sample of 939 small manufacturing cor- 

porations surviving in each of the years 1927-36 by 5 industries 12 

2. Percentage of firms in 1930 sample of 265 small manufacturing cor- 

porations' surviving in each of the years 1931-36 by 5 industries 13 

3. Ratio of compiled net profit (or loss) to net vi'orth, for manufacturing 

companies, by asset-size classes, 1931-36 average 23 

4. Comparison of profit rate with relative proportion of income and no 

income manufacturing companies, by asset-size classes, 1932 and 1936- 25 



LETTER OF TRANSMITTAL 



Hon. Joseph C. O'Mahoney, 

Chairman, Temporary National Economic Committee, 

Washington, D. C. 

My Dear Senator: This report pictures certain financial charac- 
teristics of American manufacturing corporations. While it covers 
important existing material, much of which is presented in new form, 
it also presents the results of an original study of income-tax returns 
for a sample of 1,300 small manufacturing corporations over an 1 1-year 
period. 

The analysis falls under four headings — profits and dividends, 
working capital, fixed capital, and the source and disposal of corporate 
funds. Not only is the effort made to find a general pattern, but to 
establish any differences in behavior wliich appear to be attributable 
to variations in size. The results are subject to qualifications arising 
from the material and the character of the samples, but these are set 
forth in elaborate detail in the text. 

This report has been prepared in the National Income Division of 
the Bureau of Foreign and Domestic Commerce, under the direct 
supervision of Robert R. Nathan. 

Respectfully submitted. 

WiLLARD L. Thorp, 
Adviser on Economic Studies. 

September 6, 1940 



zz 



PREFACE 



This report is the pix)dtict of an attempt to describe the operations 
and financial structure of and the flow of funds through American 
manufacturing corporations. It is based partly on the published 
financial statements of these corporations and partly on the financial 
data they submit with their Federal income-tax returns. 

Not all of American industry is incorporated nor is it confined to 
manufacturing. Why, therefore, was the present inquiry restricted 
to manufacturing corporations? 

Obviously, some boundaries had to be set up or there would be 
virtually no end to the investigation. The corporate form of organi- 
zation is not only the dominant one in America today, but financial 
statements relative to the operations and structure of corporations 
are perhaps more reliable and certainly are much more accessible than 
comparable data for unincorporated enterprises. In addition, the 
increasing extent to which business today is corporately organized, 
the widening distribution of corporate o^\'^le^ship, and the increasing 
tendency toward separation of ownersliip and manngement are 
constantly augmenting the social importance of corporation finance.^ 
The manufacturing segment of the corporate structure was singled out 
for several reasons. Manufacturing constitutes the largest single 
industrial component of the American producing economy, accounting 
for about one-fourth of the national income. A sufficiently large 
proportion of it is incorporated, that financial data — usually available 
for only incorporated enterprises — are relatively adequate. Extremes 
in size, varying from the smallest incorporated manufacturers of, say, 
men's suits to the giant steel and oil producing companies are to be 
found within the confines of manufacturing industry. Finally, many 
of the other segments of the economy which are also dominated by 
incorporated enterprises, such as public utilities and financial institu- 
tions, present a widely different range of problems, are regulated 
relatively rigidly by the State, and are being subjected to special 
investigation by other groups. 

Two broad sources of data are available on American manufac- 
turing corporations. One is through the tax collection administra- 
tion while the other is through the investment machinery. There 
are several differences between these two sources. The former has 
the advantage of covering all corporations (in the case of the Federal 
tax) and the disadvantages of being confidential and of not being 
collected for statistical purposes. The latter has the advantage of 
being issued for statistical purposes, and the disadvantage of covering 
only those corporations (usually the large ones) which are forced to 
rely on the capital markets for their funds. The particular bodies of 
data used in this report are fully described in the first chapter. Two 

' Arthur S. Dewing, "Corporation Finance" in Encyclopedia of the Social Sciences, IV, 423. 

XIII 



XIV PREFACE 

of them are derived from the first broad source mentioned above: 
One covering all manufacturing corporations, and the other covering 
a selected sample of small manufacturing corporations over an 11- 
year period. The third and fourth bodies of data are derived from 
the second broad source mentioned above; one covers a sample of 
400 large corporations over a 12-year period while the last covers a 
sample of about 500 large corporations over a 2- to 4-year period. 

The original plan of the present study was to center the analysis 
around the sample of data on 1,300 small manufacturing corporations 
drawn from income-tax returns. Due to the fact that the results of 
this study were not forthcoming soon enough, this general arrange- 
ment underwent alteration. The present plan is to view particular 
segments of the corporate financial structure as units. These seg- 
ments are first analyzed extensively as a whole, after which samples of 
large and small firms, respectively, are examined more intensively. 
This procedure is followed in the first four phases of the study : profits, 
dividends, working capital, and fixed capital. In the last phase, 
source and disposal of funds, the overall picture is missing. " Tabula- 
tions of the financial reports of small manufacturing corporations 
became available before the printing of this report and most of the 
tables are presented here. 



CHAPTER I 

SOURCE MATERIALS UTILIZED 

In order to accomplish the purpose set forth in the preface, the 
following analytical problems were singled out for special treatment: 

1. Profits and dividend policy. 

2. Working capital position. 

3. Fixed capital composition and expansion policies. 

4. Source and disposal of corporate funds. 

These various problems are not clearly separable, and the last, espe- 
cially, really encompasses the other three. 

The broad objective was not only to ascertain the influence of the 
business cycle on each of these four factors in corporation finance, 
but also to uncover any effect which size of business might be exer- 
cising thereon. Contrasts due to size were thought to be relatively 
marked in the field of manufacturing industry. In addition, other 
fields such as railroads, public utilities, and finance were the subject 
of intensive examination- by other groups. Therefore, the present 
study was limited primarily to manufacturing corporations with cer- 
tain segments being subjected to more intensive analysis than others. 
Under the circumstances, it proved impossible to study the source 
and disposal of corporate funds either for all corporations or for large 
corporations over more than the last few years. 

The obvious source of data for any overall survey of the financial 
structure of manufacturing corporations is the Treasury Department's 
Statistics of Income, a compilation of Federal corporation income tax 
returns. This source could be conveniently used back to 1926. The 
latest year available was 1936. Since all corporations must file such 
income-tax returns, this body of data is presumably all-inclusive. 
The most accessible body of information on large corporations only, 
covering approximately the same period, is the Standard Statistics 
Co. composite of financial statements of 400 corporations. The 
period covered by this identical sample is 1927-38. This leaves one 
gap in the picture: a similar sample of small manufacturing corpora- 
tions. At this juncture the present study treads new ground: The 
income-tax returns for a sample of 1,000 small manufacturing cor- 
porations in 1926 and 300 in 1930 were pulled for those and succeed- 
ing years in which the firms were in operation. Transcription of these 
returns afforded a unique body of data on a sample of small corpora- 
tions covering an 11-year period. Unfortunately, these tabulations 
are, at this writing, incomplete only a few being available for analysis 
in the present report. 

Each of these bodies of data will be described in turn in this sec- 
tion of the report. In subsequent sections the financial picture 
portrayed by these data will be constructed. 

1 



2 CONCENTRATION OF ECONOMIC POWER 

OVER-ALL PICTTJRE: "STATISTICS OF INCOME" 

An annual publication of the Bureau of Internal Revenue, Statistics 
of Income has been appearing regularly, but with at least a 2- or 
3-yea*r lag, since 1916. The last publication available at this writing 
relates to 1936. The financial data on corporations, obtained in 
connection with the administration of the corporate income tax, may 
be divided into income items, which are available from 1916 through 
1936, and balance-sheet items, which are published for the years 
1924-36, inclusive. The balance-sheet data for the years 1924 and 
1925 were taken from the capital-stock tax returns, while those for 
succeeding years were taken from the corporation income-tax returns. 
Since the reporting of balance sheets under the former tax was rela- 
tively inadequate, the present analysis is confined to 1926 and suc- 
ceeding years. 

Even for the years 1926-36, however, the reporting of balance 
sheets has not been universal; from 5 to 10 percent of the manufac- 
turing corporations filing., income-tax returns do not submit balance 
sheets, while undoubtedly another proportion, the size of which is not 
known,, submits balance sheets which are, so to speak, "fragmentary." 

Moreover, in 1926-30 i^.^ separate tabulation of income items was 
made for those returns filed with balance sheets attached. Conse-. 
quently, in the discussion of profitability, an attempt has been made to 
inflate the item of net worth in those years to make it cover the t,ame 
number of corporations comprehended by the compiled net-profit 
item. This extension of thp balance-sheet sample was both com- 
plicated and arbitrary, and its details are explained in appendix A 
to this report. For the years 1931-36 the income items for thosje 
returns accompanied by balance sheets are tabulated separately, 
thereby obviating this problem. 

Aside from the lack of consistency between the income and Dalance- 
sheet items for 1926-30, there are other peculiarities of the Statistics 
of Income tabulations which are important for one reason or another. 
The industrial classification may not only be inconsistent from year 
to year and even within the same year, but also may be of doubtful 
significance. The inconsistency arises from the fact that the tran- 
scribers may have differing opinions as to the industrial group in 
which a given concern belongs. This inconsistency, which seems to 
have been of considerable importance at one time,^ has probably been 
fairly well eliminated from the tabulations for the past decade, by 
means of a new system of coding the returns. The doubtful signifi- 
cance of the industrial classification arises chiefly from the fact that 
many corporations are actively engaged in several lines of industry. 
The practice of the Bureau of Internal Revenue transcribers has been 
to assign the returns of such corporations to that industrial category 
which accounted for the largest part of its business. With the sharp 
limitation placed by the 1934 Revenue Act on the practice of filing 
copsolidated returns, it may be inferred that the industrial divisions 
in -the Statistics of Income tabulations for 1934 and succeeding years 
are relatively clean-cut. For earlier years, however, there must have 
been considerable overlapping among industries; even for the later 

> Vide J. F. Ebersole, Susan S. Burr, and George M. Peterson, "Income Forecasting by the Use of Sta- 
tistics of Income Data" in Review of Economic Statistics, XI (1929): 171-196; XII (1930): 39^7. This is a 
detailed analysis of the character of Statistics of Income, and particularly of the difficulties encountered in 
using the publication. For present purposes usefulness of this article is limited by thB fact that its appraisal 
ends with the 1925 and 1926 volumes of Statistics of Income. 



CONCENTRATION OF ECONOMIC POWER 3 

years it can hardly be presumed that such overlapping has been en- 
tirely eliminated.^ 

Revocation in 1934 of the privilege of filing consolidated returns, 
for all corporations except railroads, has impaired the comparability 
of the balance sheet as well as income items from the period to 1934 
with the period after. The line of demarcation between industrial 
groups is probably more clearly drawn as a result of the change. 
The distribution of corporations by asset size is altered through a 
decrease in the concentration at the upper end. The industrial sub- 
group, metals, is probably more influenced by the reclassification 
than are the other subgroups, while the change in total manufacturing 
is undoubtedly of significant proportions. There is no statistical 
method for eliminating these temporal inconsistencies. The best we 
can do is recognize that they exist, and temper our conclusions 
accordingly. 

The Statistics of Income tabulations cover only corporations; the 
financial statements of unincorporated enterprises are not compre- 
hended by these figures. Therefore, an important segment of the 
producing economy is not represented. However, the chief concern 
of this study is with manufacturing companies, the bulk of which are 
incorporated. Most of the unincorporated enterprises are in the 
agriculture, trade, and service divisions of our economj^. Hence this 
deficiency is relatively unimportant. So too are several other inade- 
quacies in the Statistics of Income coverage of incorporated enter- 
prises. These arise from the facts that all returns filed may not pass 
through the statistical section of the Bureau of Internal Revenue for 
tabulation, and that the Statistics of Income figures are taken from 
the unaudited returns. The former deficiency is becoming progres- 
sively less important, although in the early years quite a few returns 
were apparently not tabulated.^ The latter deficiency is more 
persistent and may influence particularly the net incom.e and the 
depreciation figures. An estimate of such deficiency is impossible, 
but one might suppose that it is becoming less important as American 
businessmen grow more and more accustomed to the corporate income 
tax and as the administration of the law becomes more and more 
effective. 

Like most compilations of financial statements, the Statistics of 
Income tabulations are not free from the fiscal year and part-year 
problem. The question raised by fiscal * and part-year returns is not 
without significance in the present study, for two reasons. In the 
first place' there is evidence to indicate that such returns are becoming 
more numerous as the years go by. Table 1 shows that the propor- 
tion of the total business done by corporations filing fiscal year returns 
increased from 17.2 percent in 1927 to 22.6 percent in 1930, and that 
the number of fiscal year returns filed increased from 4.7 percent in 
1927 to 15.0 percent in 1935.^ The business covered by part-year 
returns, although much less sigiiificant, rose from 1.7 percent in 1927 
to 2.6 percent in 1930, and the percentage of returns from 1.3 percent 

2 To the extent that conglomerate intei!?ratlon — the extension of an enterprise to cover more than one 
product in a similar stage of manufacture — is going on today, industrial overlapping even in the later years 
may be increasing. 

' Ebersole, et al., loc. cit. 

* Returns not covering the calendar year are referred i,o as fiscal year returns if they cover 12 months 
and part-year returns if they cover less than 12 months. 

2.59845 — iO — No. 15 2 



CONCENTRATION OF ECONOMIC POWER 



in 1927 to 6.5 percent in 1935. Table 1 also indicates that the fiscal 
year returns are relatively concentrated in October, January, and 
June. Since these returns are tabulated with the calendar year 
returns nearest which they fall, the October and January concentra- 
tions do not distort seriously the temporal pattern. The same cannot 
be said, however, for the June concentration. These fiscal year 
returns, tabulated with the preceding December returns, introduce a 
half-year lead into a segment of the figures. In fact, the net effect 
of all the fiscal year returns combined is probably to introduce some 
lead into the figures; i. e., the time period to which they refer is a 
12-month ending, on the average, some time after December 31. 
Unlike some peculiarities in the Statistics of Income tabulations, this 
one is relatively important for the particular industries covered by 
this study. In 1927 — a year in which an industrial break-down of 
such data is available — ^4.7 percent of the corporate returns were 
fiscal year, (See table 1.) Of the manufacturing company returns, 
however, 6.3 percent were fiscal, while the corresponding percentages 

Table 1. — Distributions of fiscal and part-year corporate income-tax returns, as a 
percent of total sales and of returns filed, by months, 1927, 1930, 1935 



Month 



Percent of 


Percent of 


total sales 


returns filed 


1927 1930 


1927 


1935 


0.8 


1.2 


0.3 


1.0 


1.1 


1. r 


.3 


1.1 


1.0 


1.2 


.3 


1.2 


1.9 


4.4 


.3 


1.2 


1.7 


1.9 


.4 


1.1 


2.7 


3.5 


.6 


1.7 


1.5 


2.1 


.3 


1.0 



Month 



Percent of 
total sales 



1927 1930 



Percent of 
returns filed 



1927 1935 



July 

August 

September. 

October 

November. 

January 

February.. 



March. 
April... 
May... 
June... 



1.2 
3.3 



1.3 
1.2 
1.4 
3.3 



0.4 
.4 
.4 

1.0 



1.4 
1.3 
1.3 

2.7 



Total fiscal. 
Part year.. 



17.2 
1.7 



22.6 
2.6 



4.7 
1.3 



15.0 
6.5 



Source: Statistics of income. 

for the five industrial subgroups ranged thus: 

Textiles 8. 8 Lumber 8.4 

Food 6.4 Stone, etc. _. 3,7 

Metals 5.4 

That is to say, the incidence of fiscal-year returns is somewhat greater 
among the industries covered by this study (except stone-clay-glass) 
than among all corporations. By 1935 the proportion of fiscal year 
returns filed by all corporations had jumped from 4,7 percent to 15 
percent, and there is no reason to doubt that manufacturing's share 
rose similarly. Quantitative correction for this temporal heterogen- 
eity is not feasible, but its existence can be recognized. 

Certain desirable types of analysis of the Statistics of Income 
tabulations are not possible because the break-downs are inadequate. 
The division of payables into notes and accounts is not tabulated, so 
one type of analysis desired particularly by the banking fraternity is 
ruled out. Revaluations of the balance-sheet accounts are not 
tabulated, so the general analysis of source and disposal of corporate 
funds, plus the particular analyses related thereto, are not possible. 
A break-down as important as asset size does not appear until 1931, 
so that studies of concentration which use assets as the criterion of 
size are not feasible for earlier years. Finally, the number of firms 
covered in the tabulations varies from year to year. In times of 



CONCENTRATION OF ECONOMIC POWER 5 

rising business, the entries into the various industrial fields probably 
outnumber the firms that withdraw; in bad times the reverse is true. 
In addition, for the size analysis, the more succeGsful corporations 
tend to move, within limits, into the larger size categories and the less 
successful firms tend to become smaller. In any case, there is a lack 
of identical firms from year to year which seriously impairs the tem- 
poral significance of the dollar figures. It is possible that ratios 
calculated therefrom are not so suspect in year-to-year comparisons 
as the dollar totals. In appraising Statistics of Income tabulations 
one must realize that the underlying data are by-products of an ad- 
ministrative process — the levying of the Federal tax on corporate 
incomes. They are not collected for statistical purposes, so their 
interpretation must be guided accordingly. 

A bias is probably introduced into certain items in the tabulations 
by the administrative purpose for which the financial statements are 
collected. Items most likely to be seriously influenced by this factor 
would be the depreciation charge, net income, and (because of the 
capital-stock tax) the capital stock and siu"plus entries. Even in the 
case of audited returns there is probably some bias toward minimiza- 
tion of profits, and since the Statistics of Income tabulations are 
based on unaudited returns, such bias may be considerable. For- 
tunately for statistical as well as revenue purposes, there are rather 
rigid Bureau of Internal Revenue safeguards against such mini- 
mizing of profits; but it would be Pollyanna-like to assume that such 
safeguards were wholly efTective. On the other hand, it is conceivable 
that the wholesale application of these safeguards leads some con- 
scientious reporters to overstate their profits.^ 

LARGE corporations: STANDARD STATISTICS COMPOSITE 

In order to supplement the picture of the small corporations study 
it was desirable not only to examine the overall picture for all corpora- 
tions, for which the Statistics of Income data were used, but also to 
analyze a comparable set of data for large corporations. The most 
convenient source of this information was found to be the Standard 
Statistics Co. They have published the most important balance 
sheet and income account items by companv for a selected list of 400 
corporations^ for the periods 1927-30,^ 1931,8 and 1932-33.^ 

A list of the items published and the explanation relative to the 
individual items is contained in appendix C. A hand tabulation of 
these same data for the period 1934 to 1938 was prepared from th" 
source books at the Standard Statistics Co. offices in New York 
thus bringing the series up to date. The most recent issue of the 
composite of the income account and balance sheet items for these 
400 corporations for the period 1927-38 can be found in the Standard 
Trade and Securities — Composite of Financial Statements, volume 
93, No. 16, August 2.5, 1939,, section 2, published by the Standard 
Statistics Co. In addition to the above data, a separate hand tabu- 
lation was prepared for the items common stock, surplus, notes pay- 
able, accounts payable, and depreciation. Except for the few typo- 
graphical errors found, the only changes made before using these 

» The terms "minimize" and "overstate" in this passage are to be interpreted in a relative sense. No 
denial is intended of the fact that the profits figure is, to some extent, the result of conjecture. This point is 
further elaborated in the next chapter. 

9 See appendix B for list of corporations, by industry. 

' Standard Trade and Securities, Standard Earnings Bulletin, vol. 62, No. 18, November 11, 1931, sec. 2. 

» Standard Trade and Securities, "Standard Earnings Bulletin, vol. 65, No. 21, Augiist 27, 1932, sec. 1. 

' Standard Trade and Securities, Standard Earnings Bulletin, vol. 73. No. 6, July 13, 1934, sec. 3. 



6 



CONCENTRATION OF ECONOMIC POWER 



data occurred in the treasury stock account. In order to make the 
capital stock accounts strictly comparable, treasury stock was de- 
ducted from total assets and from the appropriate stock account on 
the liability side of the balance sheet wherever this had not been 
previously done. Although the bulk of the work on these Standard 
Statistics data was done by the Commerce Department's T. N. E. C. 
staff, certain of the crdss-classifications were compiled by the Income 
Tax Study, a W. P. A! project of the Treasury Department. These 
cross-classifications are indicated by appropriate footnotes. 

A stud}'" of the composition of the identical sample of the 400 cor- 
porations reveals that it consists mostly of larger corporations. These 
corporations are classified into industrial divisions, of which 25 are 
distinguished in this study. These industrial divisions are divided 
into 2 groups containing 365 mainly manufacturing companies and 
35 nonmanufacturing firms. The first includes shipping and ship- 
building and a few miscellaneous corporations in addition to the 
strictly manufacturing companies, while the second consists of those 
companies in the coal, retail merchandise, and theater groups. A 
clean-cut industrial division is not feasible. Using total assets as a 
criterion of size, we find that in 1927 there was 1 company with 
assets of under $1,000,000, 91 companies with assets of $1,000,000 to 
$10,000,000 each, 199 companies with assets of $10,000,000 to 
$49,000,000 each and 109 companies with assets of over $50,000,000 
each (see table 2) . The same break-down in 1938 shows only a slightly 
different picture. No corporation fell in the under $1,000,000 class, 
while 114 fell in the $1,000,000 to $10,000,000 class, 176 in the $10,- 
000,000 to $49,000,000 class and 110 corporations in the over $50,- 
000,000 class. 

These 400 corporations constitute a large segment of the corporate 
manufacturing structure in the United States. Comparing the size 
of the 365 manufacturing corporations in the sample of 400 with the 
size of the total manufacturing group in the Statistics of Income 
tabulation, we find that the Standard Statistics sample constituted 
38 percent of the total assets for all manufacturing corporations in the 
United States in 1927, 41 percent in 1929, 44 percent in 1931, and 52 
percent in 1936. Thus, an analysis of the financial statements of 
these 365 corporations should show a rather comprehensive picture 
of the larger corporaticns in the manufacturing group. 

Takle 2. — Frequency distribution of size of total assets Standard Statistics composite 
of 400 corporations, 1927 and 1938 



Asset size classes ($1,000,000) 


Number of corpora- 
tions 


Asset size classes ($1 ,000,000) 


Number of corpora- 
tions 




1927 


1938 


1927 


1938 


Under 1 


1 
31 
60 
86 
51 
38 
24 



46 
68 
82 
45 
25 
24 


50 to 74.9 


31 
20 
52 
4 
2 


32 


1 to 4.9 


75 to 99.9 -- 


11 


5 to 9.9 


100 to 499.9 


56 


10 to 19.9 


500 to 999.9 


S 


20 to 29.9 


1,000 and over 


3 




Total 




40 to 49.9 


400 


400 







Source: Standard Statistics Co. 

The distribution of the Standard Statistics sample according to date 



CONCENTRATION OF ECONOMIC POWER 7 

Of the 400, 86 were incorporated before the turn of the century, 261 
between 1901 and 1920, and only 103 between 1921 and 1927. There 
are 38 corporations more than 50 years old while only 27 are less than 
15 years old. It may be added that date of incorporation is not a 
wholly satisfactory index of corporate age. Frequently a corporation 
is reincorporated one or m.ore times for a variety of reasons, only one 
of which may be insolvency. For that reason, the first date of in- 
corporation has been used as the basis of table 3. Detection of a 
genuine change in corporate entity is difficult ; it is possible that under 
certain concepts of what constitutes such a change, the ages of some 
of these corporations have been overstated. 

Most of the corporations in the Standard Statistics sample issue 
their annual financial reports on* a calendar-year basis (see table 4). 
Only 80 of them file on a fiscal-year basis, 36 between January and June 
and 44 between July and December. Since the percentage, 20 per- 
cent, reporting on a fiscal-year basis is almost equally divided between 
the first half of the year and the second half, it may be assumed that 
no serious lead or lag has been introduced by aggregating the fiscal 
and calendar year returns. 

Table 3. — Frequency distribution of incorporation date, Standard Statistics 1927-38 
composite of IfiO identical companies 



Industry 


Num- 
ber 
of 
com- 
panies 


1926- 
27 


1921- 
25 


1916- 
20 


1911- 
15 


1906- 
10 


1901-5 


1896- 
1900. 


1891- 
95 


1886- 
90 


1885 

and 

before 


Advertising, printing, and pub- 
lishing 


7 
13 
27 
10 

4 
22 
19 

3 
10 
27 
16 

7 
25 

6 
21" 
24 

9 
25 

3 
10 

7 
17 

8 
30 
16 


...... 

2 


3 

1 
6 
2 
2 

""2 


1 
4 
10 

""2 

7 
4 


1 
2 
3 
5 






1 








Automobiles and trucks 


5 
3 
1 


1 
1 






Automobile parts . 






1 






1 






Beverages 






Building equipment. 


1 
5 
1 
2 
3 
3 
2 
2 


2 
4 


3 

1 
2 


2 






14 


Chemicals, fertilizers 




Containers . 






Electrical equipment, radio . .- 


"'"2 
2 

2 

2 
3 

1 


2 

7 
3 
2 
6 
1 
2 
4 
...... 

1 


3 
5 
3 
2 
4 
1 
1 
6 
1 
7 
1 
3 
3 
4 
1 
5 
4 


i 

6 
1 




1 




Food products 


1 


2 

1 


»1 


Household products 




1 




Leather, shoes 




Machinery 


5 


3 






«3 


Medicines, drugs.. 


«1 


Metals 


3 
2 
4 

1 


4 
2 


3 
1 
2 
3 


3 

5 




2 

1 


»2 


M iscellaneous securities _ 

Office and business equipment.. 


»1 


Oil production and refining 

Paper and paper products.. 






4 


M 


Railroad equipment 


...... 


1 

1 
1 


3 

...... 

4 
1 
2 


""2 
4 
2 
2 
2 




1 


«1 


Shipping, shipbuilding... 

Steel and iron _ ... 


...... 


1 
1 








•1 


Sugar production and refining... 


...... 


i" 




Textiles and apparel 


1 
2 


7 


7 
5 


...... 


.106 


Tobacco products 












Mainly manufacturing 


365 
35 


25 
2 


54 
12 


82 
11 


53 
3 


28 
3 


39 
2 


35 


13 


12 
1 


24 


All other companies 


" 1 










All companies 


400 


27 


66 


93 


56 


31 


41 


35 


13 


13 


25 







1 1855, 1868, 1872, and 1884. 

2 1885. 

3 1880, 1880 and 1881. 

« 1875. 

» 1864 and 1885. 

« 1816. 

Source: Moody's Industrials, 1938. 



' 1870, 1870, 1882, and 1882. 

• 1869. 

• 1880. 

io 1834, 1850, 1854, 1865, 1882, and 1885. 
11 1822. 



CONCENTRATION OF ECONOMIC POWER 



Table 4. — Accoimting period distribution, Standard Statistics 1927-38 composite of 

400 identical companies 



Industry 



Number of 
companies 



Fiscal, July 
to Decem- 
ber 



Calendar ' 



Fiscal, Jan- 
uary to 
June 



Advertising, printing and publishing 

Automobiles and trucks — 

Automobile parts, _ 

Automobile tires 

Beverages 

Building and real estate 

Chemicals, fertilizers 

Containers. -. 

Electrical equipment and radio 

Food products 

Household products 

Leather, shoes 

Machinery ... 

Medicine, drugs 

Metals 

Miscellaneous securities 

Office and business equipment 

Oil production and reflnmg — 

Paper and paper products 

Railroad equipment -. ._ 

Shipping and shipbuilding 

Steel and iron 

Sugar production and refining 

Textile and apparel-. 

Tobacco products... 

Mainly manufacturing.. 

All other companies ^.. 

All companies. 



365 
35 



400 



303 
17 



44 



320 



36' 



' December 31, or the 2 or 3 days on either side. 
Source: Moody's Industrials, 1938. 

SAMPLE OF 1,300 SMALL MANUFACTURING CORPORATIONS ^° 

As the principal segment in this study of the financial statements of 
corporations in the United States, the profit-and-loss statements and 
balance sheets of a sample of small manufacturing corporations cover- 
ing the period 1926-36, have been tabulated and analyzed. These 
financial statements were obtained from the income-tax returns filed 
by these corporations with the Bureau of Internal Revenue. The 
returns of the corporations included in the sample were picked from 
income-tax collection districts scattered throughout the United; 
States. An original sample of 1,000 firms was picked from the 1926 
returns and the returns filed by these same corporations were pulled' 
for succeeding years through 1936. A supplementary sample of ap- 
proximately 300 firms in 1930 was selected and the returns filed by 
these firms for the succeeding years through 1936 pulled. 

This study of the financial statements of small manufacturing cor- 
porations was undertaken in order to fill a speci^c lacuna in the 
financial statements of corporations now available. Published cor- 
porate financial data encompass almost no information on the ex- 
tremely small corporations. Such corporations do not have their 
stocks listed on security exchanges, so there is no necessity for a wide 
distribution of their financial statements. In fact, some of these cor- 
porations are so small that in all probability the only financial state- 
ments about them which exist at all are those submitted to the 
Bureau of Internal Revenue for income-tax collection purposes. 

." This phase of the study, only briefly discussed here, is described in considerable detail In appendix D 
■beoause it represents an original undertaking of which there is no published lesorlption. 



CONCENTRATION OF ECONOMIC POWER 



9 



Several requirements were set up for inclusion in the sample of 
small manufacturing corporations. In the first place it was decided to 
limit the sample to those firms with assets less than $250,000 in 1926. 
In the second place the industries comprehended by this sample 
included only the following five groups: Bakeries, men's clothing, 
furniture, stone and clay products, and machine tools and accessories. 
In addition it was necessary for the 1926 return to be usable and for 
the firm to have been in active operation in 1926. Once the sample 
of 1,000 firms in 1926 had been puUed, the returns for the same firms 
were pulled for each of the following years in which the particular 
firm was in business. The results of this process are presented in 
tables 5 and 6, table 5 applying to the 1926 sample of 1,000 firms and 
table 6 applying to the 1930 sample of 300 firms. 

It will be observed that there are not quite 1,000 firms in the sample 
as shown by table 5, nor 300 firms as shown by table 6. This is 
because the returns of some companies were thrown out during the 
process of transcription. For t>xample, of the 200 bakeries in the 1926 
sample, 185 filed usable i^l-'^^« and of these 185, 81 remained in 
existence throughout the period 1926-36. Similarly, of the 50 
bakeries in the 1930 sample, 46 had usable returns and 27 were iden- 
tical throughout the 1930-36 period. Similar results were obtained 
with each of the other industries so that in the total we had 9^9 
firms in the 1926 sample of 1,000, and 265 firms in the 1930 sample of 
300. The respective identical samples contain 381 and 135 firms. 

Table 5. — Industrial, geographical, and asset size composition of original sample 
of 1926, small manufacturing corporations 

[Number of companies] 



Area and size 


Bakeries 


Men's 
clothing 


Furni- 
ture 


Stone and 
clay 


Machine 
tool 


fi indus- 
tries 


New England: 

Less than $50,000 -.- 


22 
6 
2 


7 
9 
2 
1 


13 
9 
6 
5 


5 
8 
3 
2 
2 


.28 
6 
1 

1 
1 


75 


$50,000 to $100,000. 


38 


$100,000 to $150,000 


13 


$150,000 to $200,000. 


9 


$200,000 to $250,000 


2 


6 


$250,000 and over 






















Total 


32 


19 


32 


20 


37 


140 


East: 

Less than $50,000 


33 

12 

4 

2 

1 


64 
28 
16 
8 
9 


22 
9 

7 
7 
4 


9 
8 
5 

1 
2 


16 
4 

1 
4 


134 


$50,000 to $100,000 


61 


$100,000 to $150,000 


33 


$150,000 to $200,000 


22 


$200,000 to $260,000 


16 


$250 000 and over 




















Total 


52 


115 


49 


25 


25 


266 


Middle West: 

Less than $50,000 


30 
17 
6 
6 
4 
1 


26 
6 

12 
4 
2 


16 
15 
14 
16 
5 


28 
27 
11 
9 
9 


64 
29 
11 
9 
5 


164 


$50,000 to $100,000 


94 


$100,000 to $150,000 


64 


$150,000 to $200,000 


44 


$200,000 to $250,000 


25 


$250,000 and over 


1 


Total , 


64 


50 


66 


84 


118 


382 






South: 

Less than $50,000 


13 
5 


2 
1 

1 


5 
8 
7 
8 
5 


10 
11 
3 
5 


1 


40 


$50,000 to $100 000 


25 


$100,000 to $150,000 




11 


$150,000 to $200,000 


1 
3 




14 


$200,000 to $250 000 






8 


$250,000 and over 










Total..., 


22 


4 


33 


38 


1 


08 



10 



CONCENTRATION OF ECONOMIC POWER 



Table 5. — Industrial, geographical, and asset size composition of original sample 
of 1926, small manufacturing corporations — Continued 

[Number of companies] 



Area and size 


Bakeries 


Men's 
clothing 


Furni- 
ture 


Machine 
tool 


Stone and 
clay 


5 indus- 
tries 


West: 

Less than $50,000 -- 


8 
3 
2 

1 
1 




5 

1 
2 
2 
4 


6 
6 
3 


1 
3 


20 


$50,000 to $100,000 


3 


16 


$100,000 to $150,000 


7 


$150,000 to $200,000 - 






3 


$200,000 to $250,000 




2 




7 


$250,000 and over -.. 






















Total -.- - 


15 


3 


14 


17 


4 


53 








Grand total- ..- 


185 


191 


194 


184 


185 


939 







Source: Proposal 14 of Income Tax Study, Philadelphia. 

Table 6. — Industrial, geographical, and ass^t size composition of supplementary 
sample of 1930, small manufacturing corporations 

[Number of companies] 



Area and size 


Bakeries 


Men's 
clothing 


Furni- 
ture 


Stcne and 
clay 


Machine 
tool 


5 indus- 
tries 


New England: 

Less than $50,000 


3 

1 


2 

1 


11 
3 

1 
1 

1 


3 


3 


22 


$50,000 to $100,000 


5 


$100,000 to $150,000 




3 

2 
1 


4 


$150,000 to $200,000 






1 


4 


$200,000 to $250,000 






2 












Total. 


4 


3 


17 


4 


9 


37 






East: 

Less than $50,000 


4 
1 

1 
1 


37 
16 
10 
4 
4 


6 
4 
1 
1 


1 

1 


3 


51 


$50,000 to $100,000 


22 


$100,000 to $150,000 




12 


$150,000 to $200,000 




1 


7 


$200,000 to $250,000 




4 














Total 


7 


71 


12 


2 


4 


96 






Middle West: 

Less than $50,000 


7 
4 
2 
4 


4 


7 
5 


7 
4 
5 

I 


7 
6 
3 
2 
1 


32 


$50,000 to $100,000 


18 


$100,000 to $150,000 


10 


$150,000 to $200,000 




3 
3 


11 


$200,000 to $250,000 


1 


6 








Total 


17 


5 


18 


19 


18 


77 






South: 

Less than $50,000. 


9 
1 

1 


1 


3 

4 
2 


3 
2 


2 


18 


$50,000 to $100,000 


7 


$100,000 to $150,000 






3 


$150,000 to $200,000 




3 




3 


$200,000 to $250,000 






2 




2 














Total. 


11 


1 


11 


8 


2 


33 






West: 

Less than $50,000 . 


5 
1 
1 






5 




10 


$50,000 to $100,000 




1 

1 


2 


4 


$100,000 to $150,000 




2 


4 


$150,000 to $200,000 . . 








$200,000 to $250,000 






1 


3 




4 












Total 


7 




3 


10 


2 


22 








Grand total... 


46 


80 


61 


43 


35 


265 







Source: Proposal 14 of Income Tas) Study, Philadelphia. 



CONCENTRATION OP ECONOMIC POWER 
These facts are summarized in the following tabulation:- 



11 





Number of firms in- 


Industry 


Original sample 


Supplementary sample 




1926 


1936 


1930 


1936 


Bakine; . '- 


185 
191 
194 
184 
185 


81 
46 
. 66 
70 
118 


46 
80 
61 
43 
35 


■ 27 




27 




28 


Stone-clay . .. 


30 


Machine-tool . . . - 


23 






Total . 


939 


381 


265 


135 







The regional distribution of these firms is clearly brought out in 
tables 6 and 7. Certain regional differences in the location of these 
small manufacturing corporations are worth mentioning. Almost 
half of the firms in the sample come from the Middle West. Tl;e 
next largest representation is from the East. The Northeast ranks 
third, the South is fourth, and the Far West fifth. Practically all of 
the machine-tool manufacturers are from the Middle West, the second 
highest representation coming from the Northeast. Almost half of 
the stone-clay manufacturers, about a third of the furniture manu- 
facturers and of the bakeries, and about a fourth of the men's clothing 
firms come from the Middle West. The men's clothing industry is 
concentrated largely in the East, and, within the East, primarily in 
the New York area.^^ The only industry covered which was well 
spread out over the country was, of course, the bakery industry. 
The most concentrated were the machine-tool and the men's clothing 
industries. Furniture factories as well as the stone-clay producers 
are, like the bakeries, fairly well spread over the country. 

"The problem of what percentage of the universe is covered by this 
sample of small manufacturing corporations is a baffling one. There 
are several methods by which the approximate coverage may be 
estimated. These are pursued in some detail in Appendix D to 
this report. For the present it seems wiser to present only that set of 
coverage percentages which appears to be most logical, even though 
for these percentages there is undoubtedly some understatement. If 
we consider the industrial subgroups within the 1926 Statistics of 
Income which compare most closely with the five industries covered 
by the sample of small manufacturers, and if we associate with these 
figures the asset-size break-down existing in the 1936 Statistics of 
Income, we come out with the following estim.ated percentages of 
sample coverage: 

Percent 

Bakeries 8 

Men's clothing 3 

Furniture 6 

For the entire sample the figures seem to indicate that we have ap- 
proximately a 6-percent coverage of all these firms which fulfill the 
requirements set up for this sample. For reasons which are explained 
in the appendix, however, these estimates are probably understated. 

11 New York second and third districts cover Manhattan, where one would expect considerable concen- 
tration of men's clothing manufacturers. 



Percent 

Stone-clay 5 

Machine-tool 14 



12 



CONCENTRATION OF ECONOMIC POWER 



It may well be that the coverage of this sample runs as high' as 10 
percent and for some groups possibly up to 50 or 60 percent, but such 
figures are mere conjectures. 

The failure experience of these firms is interesting. Charts 1 and 2 
have been constructed for the purpose of showing the percentage of 
firms, by industries, in the original samples of 1926 and of 1930 which 



PERC 
100 


CHART 1 ^^^^^,, 


> 


^•. 




















lOO 




^ 


^ 


i 1 1 1 
^^^STONE /iND CLAY 












90 






s 






1 










90 




V 


.^^ 


-^ 


^ 


'^Ma 


\CHIh 


lERY 








80 
TO 
60 






V «V 


N 


^s 














80 
70 
60 










> 


^BA 


KERIL 


S^ 








FU 


RMITL 


IRE^ 


\ n: 


K 




yf^i 


- //VOL 


JSTR/ 


ES 


■-^ 




CLO 


THINi 






\ 


s; 




.^ 






50 












> 


V 


^V_ 








60 












N 


X 








v^ 


AO. 
30 












\ 


, 




^^ 




^V 


40 
30 














\ 




N>^ 

k 




^ 


















\... 


--, 


»*. 


20 
10 




p 


ERCENTAGE OT FIRMS IN \Q9.& 






20 
10 


a 


AMPl 
ORPO 


Jt or 939 SMAU. MMiUfAC 
RATIONS SURVIVING IN E 
THE YEARS I92T-36 


TUR 

:ach 


IN6 

or 








BV FIVE INDUSTRIES 

flndex Numbers I926«I00; 




































1926 


1927 


1928 


1929 


1930 


1931 


1932 1933 


1934 


1935 


1936 






JS.D.tO-^^-T 1 



were in existence in each of the following years. Chart 1 refers to the 
1926 sample and chart 2 to the 1930 sample. The figures plotted on 
the charts are indexes based on 1926 and 1930, respectively, of the 
number of firms in the samples in each year. Chart 1 reveals that the 
greatest number of failures, relatively, occurred in the men's clothing 
group and the fewest in the machine-tool industry. Only a fourth of 
the former industry remained in existence over the 11-year period 



CONCENTRATION OP ECONOMIC POWER 



13 



while two-thirds of the latter continued in operation. Bakeries are 
next to machine-tools at the top, while furniture ranks next to cloth- 
ing at the bottom. The stone-clay group follows the middle course, 
which is also close to the average for all five industries. A similar 
experience may be found for the 1930 sample of 265 companies with 
one principal exception; the sample of stone-clay companies in the 



PERCENT 
100 



dO 



80 



CHART 2 



70 



60 



50 



40 



30 



20 




PERCENT 
00 



90 



PERCENTAGE OF FIRMS IN I930 



SAMPLE OF 265 SMALL MANUFACTURING 
CORPORATIONS SURVIVING IN EACH OF 
THE VEARS 1931-36 
BY FIVE INDUSTRIES 



1930 



(index Numbers 1930 -I OO) 



1931 



1932 



1933 



1934- 



1935 



80 



70 



60 



50 



40 



30 



20 



1936 

D.D'4-0-4-4^ 



1930 group made a much better showing than the same group in the 
1926 sample. ^^ In chart 2 it can be seen that the experience of the 
stone-clay and the macliine-tooj companies was roughly the same, and 
headed the list of the five industries. Clothing again suffered the 
sharpest losses as far as failure was concerned, while furniture fared 
' 1 ^ 

" This discrepancy should be borne in mind. Further discrepancies between the 1926 and 1930 sample 
■Of stone-clay companies appear later in this report. 



J4 CONCENTRATION OF ECONOMIC POWER 

almost as badly. Bakeries, in the 1930 sample, ran just below the 
course followed by the stone-clay and machine tool industries. 

Althouj^h the industrial differences in the failure experience of these 
two samples are interesting, the most significant thing about charts 1 
and 2 seems to be that over an 11-year period such as 1926-36, one 
may expect that almost 60 percent — i. e., 5K percent annually — of a 
sample as large as 1,000 companies will fail or go out of business for 
one reason or another. Similarly, over a 6-year period such as 
1930-36, one may expect that almost 50 percent — i. e., 8 percent an- 
nually — of a sample of 300 small manufacturers will pass out of exist- 
ence. These are conclusions of far-reaching importance in any study 
of the financial experience of small manufacturing corporations. 

SAMPLE OF 525 SECURITIES AND EXCHANGE COMMISSION REGISTRANTS 

American corporations having their securities listed on the stock 
exchanges are required to register with the Securities and Exchange 
Commission. These registrants have been grouped' by the Securities 
and Exchange Commission into a number of industrial categories. 
Reports presenting the 1934-37 income statements, balance sheets, 
surplus reconciliations and other financial information, in relatively 
comparable fashion, have been prepared by a Securities and Exchange 
Commission-sponsored Work Projects Administration project for 59 
of these industrial groups. ^^ Of these 59 reports, 47 may be classed as 
manufacturing and are included in the present analysis. Table 7 gives 
the descriptions of the 48 industries covered, the Securities and Ex- 
change Commission report number of each, and the number of regis- 
trants in each group. 

Table 7. — Industrial groups of Securities and Exchange Commission registrants 
included in source and disposal analysis 



Report 
No. 


Industry- 


Number 
of regis- 
trants • 


1 


Steel producers with assets o\'er $100,000,000 each ..- 


■ 3 12 


2 




235 


4 




347 


5 




2 3 8 14 


6 




23 «9 


7 


Cisiarette manufacturers with assets over $10,000,000 each 


36 


8 


Sugar Refiners: 

Beet - 


5 






27 


10 


Oil refiners with producing lacilities having assets over $50,000.00f) each 


17 


11 


Manufacturers of.oflTice machinery and equipment. 


379 


12 




8 


14 




3»8 


16 




3 J 20 


18 




61 


19 


Bakers of biscuits and crackers --- 


3 



> Number of registrants included in the 1934-37 Industry composites, with exceptions as noted. 

> Information not available for 1934. 
3 Information also tabulated for 1938. 

• 1938 composite covers 10 companies. 

• 1938 composite covers 21 companies. 
« 1938 composite covers 12 companies. 
' 1938 composite covers 10 companies. 
8 1938 composite covers 16 companies. 

• 1938 composite covers 10 companies. 



■3 This project, once kncwn as "Census of American Listed Corporations," is now called "Survey of 
American Listed Corporations." The first 18 reports were printed and distributed free of charge. Subse- 
quent reports have been processed in limited quantities. ■ . 



CONCENTRATION OF ECONOMIC POWER 



15 



Table 7. — Industrial groups of Securities and Exchange Commission registrants 
included in source and disposal analysis — Continued 



Report 
No. 



Industry 



Number 
of regis- 
trants 



Bakers of bread and cake .^ 

Cereal manufacturers and millers , 

Quarrying and nonmelal mining. 

Cigar "manufacturers 

Snuff manufacturers 

Meat packers with assets under $50,000,000 each . 

Dairy product industry. 

Beverage manufacturers other than brewers and distDlers 

Extractive industries, sulphur-salt 

Manufacturers of industrial machinery, tools, parts, and equipment 

Manufacturers of paint and varnish 

Producers of vegetable oil.. 

Manufacturers of toilet preparations, soap, and cleaning compounds 

Leather tanners - 

Shoe manufacturers.. 

Manufacturers of brick and other clay products.. 

Manufacturers of miscellaneous building material 

Manufacturers of textiles, cotton-wool 

Manufacturers of rayon yarn 

Manufacturers of silk and rayon textiles not producing yarn 

Hosiery manufacturers 

Mahufacturers of apparel other than hosiery and footwear 

Miscellaneous textile manufacturers 

Food canners and preservers 

Manufacturers of chewing gum, candy and confectionery 

Manufacturers of diversified grocery specialites 

Manufacturers of miscellaneous food and related products 

Manufacturers of drugs and medicines 

Manufacturers of lumber products 

Producers of paper and allied products 

Manufacturers of railroad equipment 

Manufacturers of commercial cars and trucks 



24 

10 
3 



7 

3 

79 

S8 

24 

10 

25 

2 11 



24 
23 

10 

2 16 

12 

9 

10 

4 

8 

12 

26 

25 

11 



2 Information not available for 1934. 

Source: Census (Survey) of American Listed Corporations Report. 

These data covering 525 corporations have been singled out for 
the source and disposal of funds analysis of large corporations because 
the completeness of the surplus reconciliation permits adjustment for 
most of the noncash debits and credits. Such adjustments are 
absolutely necessary if a true picture of the flow of funds is to be 
obtained. The Statistics of Income tabulations do not indicate the 
amounts of the surplus debits and credits. The Standard Statistics 
compilations, while giving totals for surplus debits and credits, do not 
tell to which asset and liability accounts the surplus entries refer. 
The tabulations covering the sample of small manufacturing corpo- 
rations also permit tracing some of the surplus debits and credits and 
hence permit a general source and disposal picture. 

The major objection to the Securities and Exchange Commission data 
is that it covers only a short span of years. The first year covered by 
these reports is 1934, and even for this year the information is not 
available for some industry groups. The latest year covered by all 47 
reports is 1937, although for nine of the industries included in these 
tabulations the 1938 data have just been issued in report form by the 
Securities and Exchange Commission. In some instances the 1938 com- 
posite tabulations cover a larger' number of corporations than were 
included in those for earlier years. 

The Securities and Exchange Commission reports comprise 15 tables 
varying from a "General Survey" to "Index of Companies Included 
in Each Table." The tables of particular importance in the present 



IQ CONCENTRATION OF ECONOMIC POWER 

study are. the combined balance sheet, the combined profit and loss 
statement, and the combined surplus reconciliation. Occasionally, 
reference to the individual balance sheets and surplus reconciliations 
were also necessary, while the tabulations and footnotes in Moody's 
Industrials were in some instances consulted for supplementary 
information. In general, the aim was to prepare a broad picture of 
the source and disposal of funds of these corporations, by industry 
groups, on a composite basis, so references to the particular company 
data were kept to a minimum. 

The companies included in these Securities and Exchange Commission 
reports are, of course, the larger ones, because only the large firms have 
their securities listed on the stock exchanges. The preceding asset-size 
break-down of the corporations in the Standard Statistics composite 
would indicate also, in a general fashion, the size distribution of these 
525 firms in the Securities and Exchange Commission reports. How- 
ever, due to the fact that the Securities and Exchange Commission 
reports cover 100 more firms than are included in the Standard Stat- 
istics com.posite, and that the Securities and Exchange Commission 
reports thus far issued do not include all the industry groups within 
manufacturing, one may expect that the Securities and Exchange 
Commission sample includes relatively more of the medium-size cor- 
porations than are comprised by the Standard Statistics composite. 



CHAPTER II 
PROFITS OF AMERICAN MANUFACTURING CORPORATIONS 

The problem of estimating business profits is as baffling as it is 
crucial. Its importance becomes apparent when one attempts to 
assess the success or failure of business enterprises. Its perplexing 
nature is brought out when one attem.pts, in the actual construction 
of a profit-and-loss account, to make allowances for such items as cost 
of goods sold and depreciation expense. The problem is not lightened 
any by the presence of such balance sheet items as goodwill and other 
intangibles. Moreover, even if one blessed with omniscience did make 
an estimate for depreciation that correctly reflected the value of plant 
and equipment consumed in the year or over a period of years, such 
fixed charges as interest on long-term, debt w^ould attenuate the relia- 
bility of a profit estim,ate for 1 year as a m.easure of the success or 
failure of an enterprise considered with respect to an econom.ic time 
period other than an arbitrary calendar year. For these and other 
reasons, the following discussion of profits in the American m.anufac- 
turing industry gives only a general picture of probable m.agnitudes 
and trends.^ 

Some of the questions which might be asked in a profits study are 
these: How profitable are American manufacturing corporations? 
How stable are these profits over the years, and are some industrial 
groups consistently more profitable than others? Does profitability 
appear to be related to size of the concern? How do stockholders 
share in these profits? Is their share influenced by the phase of the 
busmess cycle and type and size of the corporations? How does their 
share compare with their equity in the concerns? 

Definitive answers to these questions are not possible. Som.e idea 
concerning the probable answers is offered, in this and the following 
chapter, from data on all manufacturing corporations reported in 
Statistics of Income, on large corporations (mainly m,anufacturing) 
contained in the Standard Statistics composite, and on sm.all manu- 
facturing corporations comprised in original T. N. E. C. tabulations. 
In the over-all picture based on Statistics of Income emphasis is 
placed not only on the figures for all manufacturing corporations but 
also for five industrial subgroups of total manufacturing which corre- 
spond roughly to the five industrial groups comprehended by the 
small manufactures study. 

GENERAL SUMMARY 

How profitable are Am.erican Tnanufacturing corporations? The 
evidence indicates that, on the average throughout the period 1926-36, 
these corporations in the aggregate earned 4.3 percent on their equity 

' For an enlightening discussion of the general problem of measuring corporate profits, see W. C. Mitchell's 
.- ^„„,t„„ t^n r. F.rwtp.in's Industrial Profits in the United States (1934). 

17 



18 CONCENTRATION OF ECONOMIC POWER 

capital. This average is flanked by extremes of profitability and 
unprofitability. Of a sample of 400 large corporations, more than a 
fom-th made a profit on total invested capital of 15 percent and more 
in each of the years 1928 and 1929, while in 1932 more than a fourth 
of these corporations incurred a loss on total invested capital of 5 
percent and more. Of a sample of approximately twice as ma*ny small 
manufacturing corporations, 40 percent were unable to earn a profit on 
their capital stock equity even in prosperous years, while this propor- 
tion rose to 86 percent in the trough of the depression. On the other 
hand, 38 percent earned a profit of 10 percent or more in 1929. 

How stable are these profits over the years? The earnings rates of 
all manufacturing corporations in the aggregate covered a range of 12.1 
percent, i. e., from a profit of 8.5 percent in 1929 to a loss of 3.6 percent 
in 1932. In 9 years out of,ll over the period 1926-36, a net profit was 
recorded; in 1931 and 1932, a net loss was shown. Extremes in varia- 
bility of profits for samples of large and small firms were indicated in 
the preceding paragraph. 

Are some industrial groups consistently more profitable than others? 
Yes, definitely. Even among the five industrial subgroups included 
in the' survey of all manufacturing corporations, marked differences 
appear. . The food group averaged 6.1 percent on their net worth over 
the 1926-36 period, while the lumber group actually lost an average 
of 1.6 percent. Moreover, the former group showed a profit in every 
year of the period, while the latter registered a profit in only 5 of the 
11 years. Between these two extremes the other industrial subgroups 
run, from more profitable to less profitable, thus: Metals, stone-clay- 
glass, and textiles. The metals group lived up to its "prince or pauper" 
reputation. Among the sample of small manufacturing corporations, 
the baking and machine-tool industries shared the honor over the 
period of having the largest proportion of firms in the 10 percent and 
over category of profit on capital stock, while the stone-clay group 
reigned supreme among the money losers. 

Is profitability related to size of concern? The answer again 
appears to be "yes" based on the experience of all manufacturing 
corporations in the years 1931-36, for which years they are classified 
into asset-size groups. The profit rates of the manufacturing cor- 
porations classified into nine asset-size classes rise consistently from 
small to large concerns. Thig conclusion is based on an average 
picture for all manufacturing concerns over the period 1931-36. 
The same holds true in a general fashion for any year out of the 
period, and for each of the five industrial subgroups. If, however, 
the companies are broken down into "income" and "no income", i. e., 
corporations with net income classified separately from those with 
net loss, this conclusion may not hold for the former, but invariably 
holds for the latter.^ Furthermore, if interest and officers' compensa- 
tion are included in profits, the smaller firms make a better showing. 
Although the available profit ratios for the samples of large and 
small corporations are not comparable, they give strong indications 
that the 400 large corporations are more successful than the small 
firms. 

How do the stockholders share in these profits? On the average 
over the 1926-36 period, stockholders in all American rhanufacturing 

' In the case of money-losing corporations, the loss gets smaller as we pass from small to large companies. 



CONCENTRATION OF ECONOMIC POWER IQ 

corporations making money received in the aggregate about 76 per- 
cent of the earnings of their companies in the form of cash dividends. 
If all manufacturing corporations are considered without respect to 
profitability — i. e., net income and loss companies combined — the 
proportion of earnings paid out in dividends is 150 percent,^ signifi- 
cantly above the proportion for income companies only. 

Is their share influenced by phase of the business cycle, type of 
corporation, and size of concern? The answer is "yes" in each case. 
The ov^r-all figures indicate that money-making corporations dis- 
burse more of their profits in depression than in prosperity, dividend 
payments being more stable than profits. Industrial subgroups such 
as lumber pay out on the average slightly more of their earnings than 
do groups such as textiles. The large corporations distribute more of 
their net available than the small ones. 

How does the stockholders' share compare with their equity in the 
concern? The answer to this question can be inferred from the con- 
clusions concerning the profit rate and the disbursement ratio. 
Manufacturing company stockholders in the aggregate received, on 
the basis of their total equity, a cash return of 5.2 percent, on the 
average over the period 1926-36. This return fluctuated from, a low 
of 2.7 percent in 1933 to a high of 7.5 percent in 1936, was highest 
in the food industry and lowest in the lumber industry, was higher 
for large than for small corporations, and was less in prosperity than 
in depression. Since this ratio is based on the net worth as valued 
on the books of the reporting corporations, no claim can be made that 
these percentages represent the return on the original investment of 
these stockholders, or even on their original investment plus retained 
earnings. 

SOME QUALIFICATIONS 

So much for the bare conclusions. Unfortunately, every single one 
is subject to a'-depressing array of qualifications. Some of these 
qualifications are peculiar to the income tax figures and have been 
indicated in the preceding chapter; others inhere in any profits state- 
ment of a ^oing concern and have received brief mention at the 
beginning of the present chapter. 

The valuation problem is the most ticklish one facing the accountant 
who would draw up a statement of the financial condition of an 
enterprise. Many items of cost such as wages, salaries, rent, interest, 
and the like involve no valuation problem unless one enters the realm 
of cost accounting. Certain other items of cost — major items, too^- 
are ascertained either by managerial judgment or by arbitrary com- 
putations. Reference is had here primarily to the cost-of-materials- 
used expense, and to the depreciation expense. In addition, certain 
balance sheet items are subject to arbitrary valuation: Investments 
in securities, value of intangibles, even the value of land and equip- 
ment are subject to .the opinion of the manager. Most of these 
idiosyncracies become concentrated in the surplus account. 

There is no need to labor here the point that corporate financial 
statements are an end-product of human judgment. It is well 
recognized by accountants as well as economists, and better expositions 

' This percentage is derived on the basis of an arbitrary assumption (see pege 45) occasioned by the fact 
that an aggregate loss was sustained in 1931 and 1932. 

259845 — 40 — No. 15 3 



20 CONCENTRATION OF ECONOMIC POWER 

of its ramifications than this writer could produce are available in a 
number of technical books.* For present purposes, it seems desirable 
only to stress the fact that financial statements are quasi fictional, 
and to outline in more detail the peculiarities of the Statistics of 
Income compilations. 

A limitation peculiar to ratios of profit to net worth may be 
mentioned. Such ratios are generally calculated by dividing the 
profit for a given period by the net worth at the end of that period, 
and the conclusion is then drawn that so much was earned on the 
owners' equity during this period. Such a conclusion is not precisely 
correct because the net worth showing at the end of the year may not 
equal the average available during the year, being either larger or 
smaller. That is to say, a more accurate denominator of the ratio 
would be the average net worth during the year. Such an average 
is impossible to obtain even from the balance sheet of a single firm, 
not to mention the composite balance sheets of a varying number of 
firms from year to year. In the case of a single firm or group of 
identical firms, the arithmetic or geometric average of successive net 
worths could be computed; but this would not necessarily be the net 
worth available on the average throughout the year. In the case of 
a composite of nonidentical firms during a span of years, even such an 
arithmetic or geometric average would lose significance except under 
the assumption' that the entries into the composite equalled in every 
respect the withdrawals therefrom. This is in general an untenable 
assumption which in periods of stable business activity might be 
approximately true, but during cyclical expansion or contraction 
would not be true. Since beginning-of-year figures are not given in 
Statistics of Income, and since prior-year figu,res apply to a different 
aggregate of corporations than the given-year figures, no attempt is 
made here to correct for the disparity between the profit-and-equity 
totals. This failure to attempt the correction is motivated less by a 
feeling that need for it does not exist, than by its impracticability. 
It is probably true, however, that such correction would be of minor 
significance except, conceivably, in a year marked by enormous 
revaluations carried to the surplus account. As far as this exception 
for revaluation is concerned, it may be observed that any profit ratio 
not based, on actual invested capital is vitiated on this score. 

Some general conclusions concerning the profits of American manu- 
facturing corporations, based on data derived from three separate 
sources, have already been indicated and some of the more important 
qualifications pointed out. To drop the matter at this point, however, 
would be undesirable for at least two reasons. First, the detailed 
analysis forming the basis of these broad conclusions constitutes, at 
the same time, their most important qualification, and second, these 
details not only provide other conclusions but also give an insight into 
little-known aspects of the corporate financial structure. In this 
chapter, the over-all picture on profitability will first be presented on 
the basis of Statistics of Income data, after which the profit ratios 
for the separate samples of large and small companies will be set 
forth. In the following chapter the dividend experience of the uni- 
verse of manufacturing corporations and of the sample of large com- 
panies will be presented and analyzed. 

* See, e. g., Solomon Fabricant, Capital Consumption and Adjustment (1938). 



CONCENTRATION OF ECONOMIC POWER 



21 



ALL MANUFACTURING CORPORATIONS 

Ratios of compiled net profit (after tax) ^ to net worth for total 
manufacturing and five of the industrial subgroups — food, textiles, 
lumber, stone-clay-glass and metal products — are presented for the 
years 1926 through 1936 in table 8. In each of the years 1931-36, 
the profit figures as well as the net worth items cover only corporations 
submitting balance sheets, which in number represented, in 1936, 93 
percent of all manufacturing corporations and which accounted in 
the same year for 97 percent of the total compiled receipts of all 
manufacturing corporations. In the years 1926-30, the net worth 
figures have been extended to the Universe of all corporations covered 
by the income figures. The inflation amounted to 1 percent in the 
case of total manufacturing and four of the subgroups; it amounted 
to one-half of 1 percent for the remaining subgroup, metals. The 
method of deriving these adjusting coefficients is explained in appen- 
dix A. Their principal determinant is the proportion of total gross 
sales reported by corporations filing balance sheets, although other 
factors are also taken into consideration. In any case, the iidjustment 
has relatively little effect on the profit ratios. 

Table 8. — Ratio of compiled net profit (after tax) to net worth, for total manufacturing 
and 5 industrial subgroups, 1926-36 





Total 
manufac- 
turing 


Food 


Textiles 


Lumber 


Stone 


Metals 


1926' .__ 


Percent 

7.8 

6.3 

7.8 

8.5 

2.7 

-1.0 

-3.6 

.7 

3.0 

5.7 

7.9 

7.6 

-.3 

5.5 

4.3 


Percent 
7.9 
6.9 
8.2 
8.0 
6.5 
2.5 
.3 
3.8 
6.1 
7.3 
7.8 
7.8 
3.3 
7.1 
6.1 


Percent 

2.2 

5.4 

3.6 

2.9 

-5.9 

-6.4 

-8.0 

2.8 

.4 

2.0 

5.2 

3.5 

-4.4 

2.5 

.5 


Percent 

3.5 

1.0 

2.5 

2.5 

-4.6 

-8.3 

-10.3 

-3.9 

-3.0 

-.8 

2.8 

2.4 

-6.8 

-.3 

-1.6 


Percent 

9.2 

6.3 

6.6 

6.3 

1.8 

-2.0 

-6.1 

-1.4 

1.6 

4.0 

7.6 

7.1 

-1.9 

4.4 

3.2 


Percent 

. 9.4 


1927 1 . . . 


7.2 


1928 1... 


9.0 


1929' 


11.1 


1930'... - 


3.4 


1931.. _ 


-2.0 


1932 . .. 


-6.4 


1933.. 


-1.0 


1934 


2.3 


1935 . 


6.3 


1936 . 


8.2 


1926-29 2 


9.2 


1930-33 2 . . 


-1.0 


1934-36" 


5.6 


1926-36 2 - .._ 


4.6 



' Net worth adjusted to include all reporting corporations, 
s Arithmetic averages (unweighted) of the annual ratios. 

Source; Statistics of Income (see text for definitions of industrial subgroups.) 

An attempt has been made to keep the industrial subgroups con- 
sistent from year to year, by combining in later years separate groups 
which in earlier years were tabulated as one industry. The food group 
includes the Statistics of Income category labeled "food products, 
beverages, and tobacco" in 1926-30; the sum of "food products in- 
cluding beverages" and "tobacl?o products" in 1931-32, and the sum 
of "food and kindred products," "liquors and beverages," and "to- 
bacco products" in 1933-36. The textile group includes "textiles and 
textile products" in 1926-35, and the sum of "textile mill products'* 
and "clothing and apparel" in 1936. The lumber group is labelef^ 
"lumber and wood products" in 1926-29, and "forest products" in 
1930-36. The metal group includes "metal and its products" in 

' I. e., Federal normal, excess-profits, and undistributed-profits tax. 



22 CONCENTRATION OF ECONOMIC POWER 

1926-35, and the sum of "metal and its products" and "motor 
vehicles, complete or parts" in 1936. 

Table 1 indicates that all manufacturing corporations enjoyed a 
profit rate in 1936 which was higher than that for any year out of the 
11-year period except 1929. In 6 years out of the period a rate 
better than the 11-year average of 4.3 percent was recorded. The 
1934-36 average was also above the over-all level, even though it was 
below the 1926-29 standing. 

Among the subgroups, food Was the only one not to register a loss 
in any year out of the period although the profit rate in 1932 was only 
0.3 percent. Its 11-year average of 6.1 percent is the highest in the 
group, and significantly above the all manufacturing level. Lumber 
made the poorest showing, with an average loss for the 11 years of 1.6 
percent. In only 5 years, 1926-29 and 1936 did this group come out 
in the black. Textiles were next to the bottom, barely breaking even 
over the period. The metal group was next to the top with a general 
average of 4.6 percent, while the stone-clay group followed a middle 
course. The largest annual loss, 10.3 percent, was recorded by the 
lumber group in 1932, and the largest profit was the 1929 ratio of 11.1 
percent for the metal group. Not only was the food ^oup the most 
profitable, but also its earnings were the most stable during the period. 
The profit ratio for this group varied within a range of only 7.9 percent. 
The all manufacturing range was 12.1 percent, while the stone and 
metal groups fluctuated almost twice as much as the food industry. 
The metal group's ratio fell from the 11.1 percent profit in 1929 to a 
6.4 percent loss in 1932, a range of 17.5 percent. By 1936 this industry 
was again earning money at the rate of 8.2 percent on its capital 
stock and surplus. 

The pronounced variation, from industry to industry, not only in 
the average profit rate but also in its stability, suggests that some 
industrial groups must be expanding and others declining relative to 
all manufacturing corporations. Such is, in fact, the case, as indi- 
cated by table 9. This tabulation sets forth the proportion of total 
manufacturing corporation assets held by each of the five industrial 
groups, for each of the periods 1926-29, 1930-33, and 1934-36.« 
Food's share increased a full percent over the 11 years, while lumber 
declined 1.4 percent and textiles 1.3 percent in relative importance. 
These trends jibe with what we observed concerning the profit ratios 
of these groups. The absence of a trend either way in the stone and 
metals group is expected from the closeness with which their profit 
ratios approximate the all manufacturing average. The principal 
question remaining is whether the contraction in the lumber and tex- 
tile industries has been as pronounced as their poor profit records 
would seem to warrant. Although table 2 presents evidence of th« 
mobility of capital, jt may also testify to insufficient mobility. Under 
equilibrium conditions one would expect the profit ratios of the 
diffefent industries to equalize; to ascertain whether that is actually 
happening requires a longer test and more accurate data than are 
available here. 

• These 5 industrial groups include only a part (about two-thirds) of total manufacturing, so the percent- 
ages do not total 100 percent. It may be observed that the share of total manufacturing held by these 5 
subgroups is less in depression than in prosperity. 



CONCENTRATION OF ECONOMIC POWER 



23 



Table 9. — Percentage distribution of total mamifacturing corporation assets held by 
5 industrial subgroups, by periods, 1926-29, 1930-33, 1934-36 





Total 
manufac- 
turing 


Food 


Textiles 


Lumber 


Stone 


Metals 


1926 to 1929 ' 


Percent 
100 
100 
100 


Percent 
13.7 
13.5 
14.7 


Percent 
9.9 
7.9 
8.6 


Percent 
5.7- 
4.6 
4.3 


Percent 
3.5 
3.4 
3.5 


Percent 
33 


1930 to 1933 1 


32 8 


1934 to 1936 ' 


33 1 







1 Averages of the annual percentages. 
Source: Statistics of Income. 

Profitability and Size. 

With the general-profits picture of manufacturing industry behind 
us, it is appropriate to examine the profit ratios of different size groups 
of corporations. Since 1931 certain balance sheet and income items 
have been classified, in the Statistics of Income tabulations, by asset 
size of the reporting corporations. The companies are grouped into 
nine size classes and divided into income and no-income categories. 



CHART 3 



RATIO OF COMPILED NET PROFIT 
FOR MANUFACTURING COMPANIES 
1931 - 1936 

PfPCFNr 



(OR LOSS) TC NET WORTH , 
, BY ASSET-SIZE CLASSES, 
AVERAGE 

P£fiCt/VT 
20 i- 




SIZE CLASSES 
I.- *0T0 50 THOUSAND 
JJr 50 TO /CO THOUSAND , 
M- /OO TO BSO THOUSAND 
Wr 250 TO 500 THOUSAND 
v.- 500 TO WOO THOUSAND 
1000 TO 5000 THOUSAND 
6000 TO 10000 THOUSAND 
Ym- /OOOO TO 50000 THOUSAND 
n.T 50000 AND OVER 
Xr ALL COM PAN /£S 



yht 



Source : Siaiisiics of Income 



The average ratios over the period 1931-36 of compiled net profit or 
loss (before taxes) ^ to net worth for all manufacturing corporations are 
plotted on chart 3. The black bars indicate a positive ratio and the 
white a negative ratio. On the left-hand side are presented the data 
for income and no-income companies separately; on the right-hand 
side, for both groups combined. The size classes are detailed at the 

' Similar ratios with compiled net profit after tax will be presented later for total manufacturing in 1936| 



24 CONCENTRATION OF ECONOMIC POWER 

bottom of the chart; the tenth bar in each figure refers to the respec- 
tive ratio for all the companies without regard to asset size. 

The cardinal question which it is attempted to answer from these 
data is whether the large manufacturing corporations are more profit- 
able than the small. Chart 3 indicates that over the period 1931-36 
they were. If we consider all companies — the right half of the chart — 
there is a definite progression upward ^ of the profit rate with size. 
In only the next-to-largest class— $10,000,000 to $50,000,000— is this 
progression not found; and the regression in this one instance is slight. 
The fact that the corporations below the $250,000 asset level averaged 
a loss over the 6 years while those above that point averaged a profit, 
suggests strongly that the larger firms have the higher profitability. 
The 19-percent average loss of the smallest group (under $50,000) 
and the 4-percent average profit of the largest group ($50,000,000 and 
over) represent extremes in profitability as well as in asset size. The 
greater relative dominance of the larger, and more profitable, concerns 
is evidenced by the 3-percent average profit of all companies without 
regard to size. 

An interesting deviation from this over-all pattern appears when 
the income and no-income classes are examined separately (see left 
half of chart 3). If we consider only the income companies — ad- 
mittedly a shifting group from year to year — a slight downward trend 
in the profit ratio with increasing asset size is observable. This regres- 
sion is slight — covering a span of about 4 percent — but is pointed by 
the fact that the most profitable class is the smallest-asset size with 
an average ratio for the 6 years of 12 percent, while the least-profitable 
class is the largest-asset size with a ratio of 8 percent. The average 
for all income companies under $1,000,000 is about 11 percent, while 
that for all income companies above that size is about Qji percent. If, 
on the other hand, we consider only the no-income companies — also a 
shifting group from year to year — a definite progression, with increas- 
ing size, from most unprofitable to least unprofitable emerges. The 
41-percent average loss over the 6 years of the smallest-size class is 
in sharp contrast to the less than 2-percent average loss of the largest- 
size class. Moreover, between these two extremes there is a persist- 
ent progression. The fact of the matter seems to.be that this pro- 
gression of the profit rate of the no-income companies is so pronounced, 
and the relative importance of the no-income companies so great, that 
when thvjy are combined with the income companies, the profit pattern 
of the former is dominant and the over-all pattern, as pointed out 
above, is definitely progressive; that is, profitability increases directly 
with asset size. 

Thus far, we have been concerned with average ratios for the 6 years, 
1931-36. In order to disclose cyclical differences in the profitability 
pattern, the data for 1932 (a depression year) and 1936 (a recovery 
year) are plotted on chart 4. At the top of the chart appears the 
division of the returns filed by the companies in each size class into 
income and no-income groups; the black area represents the percent-' 
age of returns reporting an income, and the white area the percentage 
of returns with a loss. In the lower half of chart 4 appears the profit 

' When discussing the variation of a ratio with asset size, it is convenient to employthe term "progressive" 
when we mean increasing ratio with increasing asset size, and the term "regressive" when we mean decreas- 
ing ratio with increasing a;?et size. 



CONCENTRATION OF ECONOMIC POWER 



25 



ratios for each size class for all companies, that is, income and no- 
income companies combined. A comparison of the 2 years brings out 
interesting differences. 



CHART 4 



COMPARISON OF PROFIT RATE WITH RELATIVE PROPORTION 
OF INCOME AND NO INCOME MANUFACTURING COMPANIES, 
BY ASSET SIZE CLASSES, 1932 AND 1936. 

PERCENT 



PERCEhtT 
100^- 






-10 

-20 

-30 
-40 



Z 



Z 



SIZE CLASSES 
I. - ^ TO 50 THOUSAND ' 



21 



*LES5 TMN 0.1% 



IZ.- 

m.~ 
m- 
y:- 
w.- 
m- 
vm- 
a- 

X.- 



50 TO .'00 THOUSAND 
100 TO 250 THOUSAND 
250 TO 500 T.WUSAND 
500 TO 1000 THOUSAND 
/COO TO 5000 THOUSAND 
^OOO TO /OOOO r.Wl/SA.VO 
/OOCO TV 50000 mOUSANO 
5OOO0 A NO OVER 
ALL COMPANIES 



Source: Siaiisiica of Incoma 





10- 

20- 

30- 

40- 
40-m 



The proportion of income companies is, quite naturally, much 
smaller in 1932 than in 1936. Similarly, the profitability picture for 
every asset size class is white in 1932 and black (except for the smallest 
size class) in 1936. The progression, WMth asset size, of the profitabilit}^ 
ratios and the proportion of companies with incomes, however, offers 
interesting contrasts. In 1932 the progression upward of the profit- 
ability ratio is marked as to both range and persistency. The 35.5 
percent loss of the small(>st size class and the breaking even of the 



2Q CONCENTRATION OF ECONOMIC POWER 

largest companies represent extremes. Moreover, only between the 
seventh and eighth size classes is the progression of the profit ratio 
absent, and the regression here is negligible. The progression of the 
ratio of income company returns to returns for all companies, how- 
ever, is somewhat spotty. In the first place, its range, from 13 per- 
cent in the smallest class to 39 percent in the largest, is not so broad 
as that in the profit ratios. Secondly, the progression is definitely 
absent in two instances: between the fifth and sixth size classes and 
again between the seventh and eighth size classes. There is definite 
progression over all size classes, but it seems less marked than that 
of the profit ratios. In 1936, on the other hand, a contrasting picture 
appears. The progression in the proportion of returns filed by income 
companies is not only clearly marked but definitely persistent. There 
are no interrupting regressions, and the range from 36 percent in the 
smallest size class to 89 percent in the largest is extensive. The profit 
ratios, however, are progressive only up to the $10,000,000 asset level; 
after that point they decline. These differences suggest that the 
progression or regression of the profit ratios with asset size is not 
determined solely by the relative number of income and no income 
companies in each size class. It must also be determined by a factor 
not showing on this chart: The relative size of the income as com- 
pared with the loss. Thus, in 1936 the progression m the percentage 
of income company returns continued in the eighth and ninth size 
classes, while regression appeared in the profit ratios. This must- 
mean that, although there were relatively more income companies in 
these two largest size classes, the income they reported did not out- 
weigh the losses reported by the money-losing firms quite so much 
as in the next smaller size class. 

This conclusion is perhaps more labored than its significance merits. 
The fact remains that in both the years 1932 and 1936 there is a 
definite upward movement of the profit ratios with asset size. This 
surge upward is virtually uninterrupted in 1932; in 1936 the profit- 
ability curve reaches a peak at the $5,000,000 to $10,000,000 asset 
class, but the decline beyond that point is modest. The conclusion 
cannot be gainsaid that, taking aU manufacturing companies together, 
the larger firms are more, profitable than the smaller when one defines 
profitability in terms of net income (before tax) to net worth. 

Compiled net income after tax classified by asset size is not given 
in the published Statistics of Income tabulations. The tax figure, by 
asset size, has been obtained from the Source Book of Statistics of 
Income,® original compilations maintained by the Bureau of Internal 
Revenue. Deducting this from the compiled net profit before tax 
gives a figure for compiled net profit after tax. The ratio of this 
profit figure to net worth is similarly progressive, as shown by table 
10 which presents the 1936 total manufacturing ratios separately for 
income companies and for all companies.^" This profit ratio, after 
tax, is modestly regressive in 1936 for income companies, falling with 

» Henceforth referred to as the Source Book. The Source Book is a comprehensive compilation of data, 
supplementary to the published volumes of Statistics of Income. A copy of the Source Book is maintained 
in the Statistical Section, Income Tax Unit, Bureau of Internal Revenue, and is available for research pur- 
poses to qualified students representing accredited organizations and to administrative officials of State and 
other governmental units. 

lo There is obviously no difference between compiled net profit before and after tax for no mcome com- 
panies, so ratios for these companies are not included in table 10. 



CONCENTRATION OF ECONOMIC POWER 



27 



only one interruption from 12.8 percent in the smallest asset class to 
8.6 percent in the largest. In the case of all manufacturing companies, 
however, the profit ratio after tax i,s still progressive. The upward 
trend of the ratio with asset size is marked and persists through the 
$5,000,000- to $10,000,000-asset class. Thereafter the ratio declines 
modestly. The general conclusion is that taking the profit ratio after 
Federal tax does not eliminate the progression of profitability with 
size, if one considers income and no income companies combined. 

A similar pattern of profitability classified by asset size also appears 
in each of the five industrial subgroups of manufacturing considered 
here. (See table 11.) If we limit our examination to income com- 
panies only, a modest regression is clearly marked, in the 1931-33 
period, in all subgroups except food. In the case of food there is 
some evidence of regression, but the ratio fluctuates too wildly to 
permit a definite conclusion. In the 1934-36 period the regression 
of the income companies is more clearly marked for food, lumber, 
and metals than for the other divisions. For the no-income companies 
there is^ definite progression of the profit rate without exception either 
for industry or time period. The profit rates of all companies are 
strongly progressive in each industrial subdivision in the first period, 
and moderately progressive in the second period. The 1931-36 over- 
all patterns for these industrial subgroups are, it may be added, 
similar to those set forth in table 11. 



Table 10.^ — Ratio of compiled net profit after tax to net worth for total manufac- 
turing, shoion separately for income companies and for all companies, 1936 



Asset size classes 



AJl com- 
panies 



to $50,000 

$50,000 to $100.000 

$100,000 to $250,000 

$250,000 to $500,000 

$500,000 to $1,000,000.... 
$1,000,000 to $5,000,000.. 
$5,000,000 to $10,000,000. 
$10,000,000 to $50,000,000 
$50,000,000 and over 

Total 




Source: Statistics of Income and Source Book. 



28 



CONCENTRATION OF ECONOMIC POWER 



Table 11. — Ratio of compiled net profit to net worth for 5 manufacturing subgroups 
classified by asset size, income and no-income companies, by periods, 1931-33 
and 1934.-36 



Asset size classes 



INCOME COMPANIES 

to $50.000 

$50,000 to $100,000 

$100,000 to $250,000. 

$250,000 to $500,000 

$500,000 to $1,000,000 

$1,000,000 to .$5,000,000 

$5,000,000 to $10,000,000 

$10,000,000 to .$.50,000,000 

$50,000,000 and over 

Classes grouped (minimum). 
Classes grouped (maximum) 
All companies 

NO-INCOME COMPANIE.S 

etc $50,000 

$50,000 to $100,000 

$100,000 to .$250,000 

$250,000 to $500,000 

$500,000 to $1,000,000 

$1,000,000 to $5,000,000 

$5,000,000 to $10.000,000 

$10,000,000 to $.50,000,000. 

$50,000,000 and over.. 

Classes grouped (minimum). 
Classes grouped (maximum) 
All companies... 

ALL COMPANIES 

Oto $50,000 

$50,000 to $100,000 

$100,000 to $250,000 

$250,000 to $500,000 . . . . 

$500,000 to $1,000.000 

$1,000,000 to .$5,000,000 . ... 
$5,000,000 to $10,000,000 .. 

$10,000,000 to .$50,000,000 

$,50,000,000 and over 

Classes grouped (minimum). 
Cla.sses grouped (maximum) 
All companies -- 



Food 



1931-33 1934-36 



Pet. 
13.0 



10.0 
11.4 
*9. 2 
«10. 4 
a 9. 2 
ni.4 
10.7 
10.6 
10.6 



-34.4 
-18.1 
-14,7 
-10.9 
-9.1 
•-9.9 

(.a) 

(•") 
-5.8 
-6.5 
-8.5 



-14.6 
-5.4 
-3.1 
.3 
2.2 
•1.3 
(*.) 

(*») 

(*») 

6.6 

5.8 

4.6 



pa. 

18.4 

14.2 

13.6 

14.3 

14.3 

•15.1 

•14.2 

•11.7 

•11.2 



12.7 
12.9 



-28.9 

-13.9 

-11.6 

-8.8 

-8.0 

(•) 

(•) 

(•) 

(•) 



-3.7 



-3.5 
2.9 
4.9 
7.2 
8.8 

(•) 

(•) 

(•) 

(•) 



11.0 
10.1 



Textiles 



1931-33 1934-36 



Pet. 
9.1 
8.4 
8.3 
8.5 
7.5 
7.0 
•5.5 
(•») 

5.5 
5.8 
6.6 



-63.1 
-29.3 
-21.7 
-13.2 
-11.3 
-8.3 
•-9.6 

(*a) 
(.a) 

-7.0 

-7.9 

-11.2 



-37.9 
-14.8 
-8.8 
-4.0 
-2.8 
-1.9 
-3.9 

(.a) 
(.a) 

-1.2 
-1.9 
-3.5 



Pd. 

8.9 
9.3 

10.3 

10.4 
9.9 
8.6 

(•) 

•8.1 

(•) 



8.0 

8.7 



-43.fi 
-17.1 
-12.7 
-9.9 
-8.3 
-6.2 
■-6.0 
(*) 
(*) 



-5.3 

-8.5 



2.1 
3.8 
4.3 
3.8 

(•) 

(*) 

(*) 



4.4 
3.5 



Lumber 



1931-33 1934-36 



Pet. 

8.3 
7.9 
6.7 
5.2 
5.3 

(•) 

(•) 

(•) 

(•) 



6.0 
5.3 



-55.9 
-26.7 
-18.9 
-14.8 
-12.0 



(*) 
(*) 



-6. 



-39.4 
-18.5 
-13.2 
-10.9 
-S.3 

•(•) 

(*) 

(•) 

(*) 



-5.5 
-7.4 



Pet. 

10.9 
8.6 
9.1 
8.8 
8.1 
*6v9 
•5.3 

(•«) 
3.7 
5.3 
6.4 



-39.9 

-18.6 

-13.2 

-9.7 

-7.0 

•-5.4 

•-3.7 

(••) 

(•») 

-3.1 

-4.0 

-6.5 



-14.4 

-4.4 

-1.4 

.1 

1.0 

•1.3 

•.9 

(•a) 
(.a) 

.1 

.7 

.1 



stone 



1931-33 1934-36 1931-33 1934-36 



Pet. 

7.8 
8.0 
7.7 
7.2 
6.3 
6.1 
5.5 

(•) 

(•) 



5.2 
5.6 



-35.2 
-17.0 
-14.3 
-11.8 
-9.5 
-8.0 
-6.5 
(*) 
(•) 



-3.9 

-7.6 



-20.3 
-9.5 
-13.9 
-9.3 
-6.0 
-4.9 
-3.6 

(•) 

(•) 



.4 
-2.2 



Metals 



Pet. 
11.0 
11.2 
11.2 
10.1 
10.4 
8.1 
11.8 
•9.7 
•12.0 



10.5 
10.2 



-28.4 

-12.8 

-10.6 

-7.8 

-11.4 

-4.9 

-5.3 

•-3. 1 

(*) 



-3.1 
-6.9 



-12.3 

-1.9 

.3 

1.6 

3.6 

3.1 

6.3 

•6.5 

•12.0 



8.2 
5.4 



8.3 

7.1 
7.2 
7. 1 
6.4 
7.3 



-42.8 
-20.6 
-15.6 
-13.3 
-10.8 
-^9.3 
-7.4 
-7.5 
-3.0 



-30.7 
-13.6 
-9.9 
-7.8 
-6.3 
-5.6 
-3.7 
-4.0 
-.6 



Pet. 

13.7 
12.7 
12.6 
12.3 
12.7 
12.0 
11.1 
9.8 
10.9 



-30.3 
-14.0 
-10.3 
-8.6 
-7.2 
-6.3 
-6.1 
-4.5 
-1.2 



-4.6 



-8.2 
2.2 
4.4 
5.6 
6.4 
7.2 
6.8 
6.1 
8.2 



•See special note. 
» See special note. 

Special Note. — To avoid disclosure in Statistics of Income it is sometimes necessary to group certain 
size classes. The number of classes it is necessary to group varies from year to year, industry to industry, 
and as between income and no-income companies. In order to achieve "income" to "no-income" as well 
as interperiod consistency and at the same time to present the finest possible asset size break-down for each 
period, it has been necessary to show 2 classes groupwd figures, a so-called "minimum'.' referring to the asset 
class ratios marked with an "a," and the so-called "maximum" referring to the asset cla.ss ratios marked 
with an asterisk ('). Within a given industry the "classes grouped (maximum)" figures cover the same 
asset classes from period to period and from income to no income companies. 

Source: Statistics of Inco*me. Figures are averages of the annual ratios. 

Epstein and Paton Affirm Otherwise. 

At this point let us interrupt the analysis of the Statistics of Income 
data long- enough to consider the conclusion of two other writers on 
profitability and size, which appears on the surface to disagree with 
that formulated here. Ralph C. Epstein, in Industrial Profits in the 
United States," classified the 1924 and 1928 profit ratios of 2,046 

" A publication of the National Bureau of Economic Research, this book analyzes the result? of a statis- 
tical study Epstein made for the Department of Commerce and published in Source Boo': for the Study 
of Industrial Profits (1931). An identical sample nf corporation income tax returns, including 2.04d manu- 
facturing companies, was pulled from the Bureau of Internal Revenu;- files for the years 1919-2S, and the 
financial data thereon specially tabulated by the Bureau of the Census. No analysis is. presented in the 
Souice Book, and ne'thcr there nor in the National Bureau publication is any description given 
of how the study -originated, how the sample was drawn, why the tabulations made were selected, 
and how the work was carried on. Evidently the desire to treat the data in strictest confidence resulted in 
these omissions. 



CONCENTRATION OF ECONOMIC POWER 29 

manufacturing corporations by size of capitalization. He then con- 
cluded that — 

beyond question, among manufacturing corporations of all sizes of capital from 
$26.0,000 to over $50,000,000, the smaller corporations earn profits at higher rates 
than the largest ones * * * (p. 132). 

W. A. Paton, in Corporate Profits as shown by Audit Reports,'^ 
classified the 1927-29 profit ratios of 341 identical manufacturing 
companies by size of assets. He then reached — 

* * * the apparent conclusion that by and large in the period covered the 
high-earning companies are those with assets of $200,000 or less rather than the 
large companies * * * (p. 76). 

The conclusions of these men will be considered in turn. 

Epstein drew his sample from the income-tax returns filed wdth 
the Bureau of Internal Revenue. The figures apply to 2,046 manu- 
facturing corporations in 1924 and again to the same firms in 1928. 
The companies are classified into seven total capital classes from 
"under $500,000" to "$50,000,000 and over," total capital being taken 
equal to funded debt plus net worth. Two profit ratios are given. 
The first is the ratio of net income to capitalization, which corresponds 
in general to our ratio of compiled net profit to net worth. The 
second is the ratio of net profit before payment of interest (estimated 
bond interest) to total capital. It is this latter ratio which Eptsein 
emphasizes, but the difference between the two is slight in each size 
class and in each of the 2 years. Both of them are presented in table 
12, which is essentially a reproduction of Epstein's table 26. 

The data in Statistics of Income, unfortunately, cannot be classified 
b}^ size of capital. How^ever, for the years 1931-36 it is possible to 
ascertain the average amounts of total capital and of total assets held 
by manufacturing corporations in each of nine asset classes. A 
calculation of these average capitals and average assets for 1935 reveals 
that the former run about three-fourths of the latter. The only 
exception is in corporations below the $250,000 level, when net worth 
plus funded debt runs between a half and three-quarters of total 
net assets. There are slight differences if one considers income 
companies separately from no income corporations, the capital-to- 
assets ratio of the former rimning above, and that for the latter run- 
ning below, the all companies percentages. Epstein's capital class 
of "under $500,000" therefore probably corresponds with the first 
four Statistics of Income asset classes combined (i. e., to $50,000, 
$50,000 to $100,000, $100,000 to $250,000, $250,000 to $500,000) and 
some part of the next asset class ($500,000 to $1,000,000). Similarly, 
the other capital classes will overlap the asset classes somewhat, while 
two of Epstein's capital classes ($1,000,000 to $2,499,999 and $2,500,- 
000 to $4,999,999) are virtually comprehended bv one of the asset 
classes ($1,000,000 to $5,000,000). Such discrepancies are so slight, 
however, that it would probably be no distortion of the comparison 
to group the smallest four asset classes in Statistics of Income together 
and then line up the asset classes directly with the capital classes. 
Since the small concerns are admittedly underrepresented in Epstein's 
sample — firms with total capital under $250,000 constitute less than 
2 percent of the total number in each year '^ — a good argument can 

'2 Also a Kational Bureau of Economic Research publication, based on confidential reports in the flies 
of members of the American Institute of Accountants. 

" Epstein'.s Industrial Profits, footnote on p. 132. In the universe covered by Statistics of Income in 
1936, firms with assets under $50,000 constitute, in number, SI percent of all manufacturing corporations. 



30 



CONCENTRATION OF ECONOMIC POWER 



be made for omitting altogether from the discussion the three smallest 
asset classes in Statistics of Income. 

A glance back at charts 3 and 4 should convince even the skeptical 
reader that whether the four smallest asset classes were combined or 
the three smallest sloughed off, the ratio of compiled net profit to net 
worth for all manufacturing corporations still progresses upward with 
asset size over the period 1931-36 and in each of the years 1932 and 
1936. Moreover, this ratio corresponds to Epstein's income to capi- 
talization figures presented in table 12, the movement of which is 
regressive with capital size. 

In order to correspond roughly with Epstein's ratio of profits (before 
bond interest) to total capital (including all liabilities except current 
items), we present in table 13 the ratio of compiled net profit (before 
tax) plus all interest (both long and short term) to total assets. Bond 
interest is not segregated from short-term interest on the income-tax 
returns and Epstein's methods of making the segregation seems to 
be a potentially dangerous refinement.'^ Therefore no attempt has 
been made here to introduce the segregation; and under these cir- 
cumstances it has seemed more reasonable to take total assets rather 
than total capital as the denominator. 

The resulting ratios are presented in table 13 for total manufac- 
turing over the periods 1931-33 and 1934-36, for income companies, 
no income companies, and all companies. For the present, attention 
is directed to the all companies column: The ratio of compiled net 
profit plus interest to total assets is also progressive with asset size. 
It rises in the first period from 13.2-percent loss in the smallest class 
to 1.8-percent profit in the largest; and in the second period from 3.7- 
percent loss to 0.6-percent profit. This conclusion persists whether 
we combine the four smallest asset classes or lop off the three smallest 
classes. This profit ratio is definitely larger for the big than for the 
small corporations. Moreover, the progression is regidar, the only 
exception being the 1934-36 averages for the two largest asset classes. 

Table 12. — Epstein's sample: Earnings rates, 2,046 manvj acturing corporations by 
capital classes, 1924 ond 1928 



Capital classes 



Under $500,000 

$500,000 to $999,000 

$1,000,000 to $2,499,000... 
$2,500,000 to $4,999,000... 
$5,000,000 to $24,999,000.. 
$25,000,000 to $49,999,000 
$50,000,000 and over 



1924 



Number 
of corpo- 
ratioas 



230 
461 
596 
310 
315 
68 
66 



Percent 
income 
to capital- 
ization 



20.4 
17.9 
15.6 
13.1 
9.8 
13.0 



Percent 
profits 1 
to total 
capital 



20.3 

17.7 
15.4 
12.9 

9.5 
12.6 

8.1 



1928 



Number 
of corpo- 
rations 



187 
376 
607 
351 
376 
67 
82 



Percent 
income 
to capital- 
ization 



20.3 
13.6 
13.8 
14.3 
10.0 
12.3 
10.6 



Percent 
profits ' 
to total 
capital 



20.2 
13.4 
13.6 
14.0 

9.7 
11.8 

9.8 



1 Including estimated long-term interest. 

Source: Epstein, Industrial Profits in the United States, p. 133. 



1* See the appropriate appendix to Industrial Profits for an explanation of Epstein's adjustment. After 
deriving what he considers a representative bond interest rate, he applies this to the funded-debt figure 
and obtains thereby estimated long-term interest. Such an overall percentage seems not only dangerous 
to employ, but is akso derived from the experience of large companies. It appears that there might be 
significant differences in such a percentage between large and small corporations, while the incidence of 
default probably also varies by asset size. 



CONCENTRATION OF ECONOMIC POWER 



31 



The contrast between this picture and that portrayed by the profit 
to total capital column in Epstein's tabulation (see table 12) is as 
distinct as that between his income to capitalization and our compiled 
net profit to net worth (cf . supra) . Both are contrasts which require 
explanation. 

The two sets of figures cover different time periods. Epstein's data 
refer to 1924 and 1928, while the Statistics of In'come figures cover 
the years 1931-36. There seems to have been nothing which hap- 
pened between 1928 and 1931, however, which could have completely 
reversed the trend of the profit ratios with size of corporation. 

Since both sets of data are drawn from the same basic source — 
Federal income-tax returns — it must be that the characteristics of the 
corporations on which the tables are based dift'er. Since, further, the 
Statistics of Income tabulations include practically all reporting cor- 
porations — almost 90,000 manufacturing corporations as compared 
with Epstein's 2,046 — there must have been something about the 
Epstein sample which creates the discrepancy. 

It will be recalled that Epstein's sample consists of identical firms, 
that is, for a corporation to qualify for inclusion in the 1924 sample 
it had also to be in existence in 1928. W. C. Mitchell, in his intro- 
duction to Industrial Profits, admitted that Epstein's sample has a 
substantially lower proportion of no-income companies than report 
to the Bureau of Internal Revenue. He concluded that "if the latter 
vastly larger body of returns is fairly representative of average experi- 
ence, then the present sample trends to overstate profits" (p. 19). 

This seems to offer the cUie to the discrepancy. If we consider 
only the income companies in our tabulations, it is true that the profit 
rate is somewhat regressive with size. Reference to chart 3 reveals 
that the ratio of compiled net profit to net worth (corresponding to 
Epstein's income to capitalization) for income companies alone is 
shghtly higher (around 11 percent) for the small companies than for 
the large (around 9% percent). The same thing can be seen from 
table 13, which corresponds roughly to Epstein's ratio of profit to 
total capital: The ratio, for income companies only, of compiled net 
profit plus interest to total assets is slightly regressive. 



Table 13. — Ratio of compiled net profit plus interest ' to total assets, for total manu- 
facturing classified by asset size, income and no-income companies, 1931-33 and 
1934-36 averages 



Asset classes 



1931-33 average ' 



Income 
companies 



No-income 
companies 



All com- 
panies 



1934-36 average ' 



Income 


No-income 


companies 


companies 


Percent 


Percent 


9.3 


-11.8 


9.0 


-6.2 


8.9 


-6.1 


10.0 


-4.3 


10.3 


-4.0 


9.6 


-2.9 


9.6 


-2.0 


8.6 


-1.3 


7.8 


+.4 


8.7 


-2.1 



All com- 
panies 



Oto $50,000 

$60,000 to $100,000 

$100,000 to $250,000 

$250,000 to $600,000 

$500,000 to $1,000,000. . .. 
$1,000,000 to $5,000,000... 
$5,000,000 to $10,000,000.. 
$10,000,000 to $50,000,000 

$50,000,000 and over 

All companies 



Percent 
8.2 
7.2 
7.4 
7.6 
7.8 
7.4 
8.2 
6.9 
5.8 
6.6 



Percent 
-20.3 
-11.1 
-9.1 
-7.5 
--6.7 
—5.8 
-4.4 
-4.2 
-.9 
-3.8 



Percent 

-13.2 

-5.7 

-3.8 

-2.4 

-1.5 

-1.0 

0.2 

. 1 

1.8 

.2 



Percent 
-3.7 
1.7 
3.3 
4.5 
5.2 
5.8 
6.1 
5.9 
5.6 
5.4 



• Both long and short term. 
Sources: Statistics of Income and Source Book. 



2 Averages of annual ratios. 



32 



CONX^ENTRATION OF ECONOMIC POWER 



We can conclude that Epstein's sample, at least in this one respect, 
follows the pattern of profitable companies only, and that his conclu- 
sion is therefore applicable only to that group of companies. If all 
corporations are represented, quite a different conclusion follows. 
Profit rates which are regressive with size for the profitable companies 
become progressive when all companies are taken into accoufit. 

Let us now turii to Paton's results gained from a study of audit 
reports. Through the cooperation of the American Institute of 
Accountants with the National Bureau of Economic Research, Paton 
had a body of auditor's reports for 700 small- and medium-size cor- 
porations covering the years 1927-29. Of this nmiiber, 341 were 
manufacturing corporations and hence are of particular interest in 
the present instance. In his analysis of the effect of size on earnings, 
Paton took 3-year (1927-29) aggregates of the ratio of profits, includ- 
ing interest charges (apparently both long and short term), to total 
assets. Such 'aggregates — that is, the sum of profits plus interest for 
the 3 years divided by the sum of total assets for the 3 years — are 
classified into five asset classes. Paton's resulting ratios for 1927-29 
are set forth in table 14, alongside 1931-36 Statistics of Income 
figures'made as comparable as possible. The size classes are roughly 
similar and the same definition of profitability has been followed. 

The contrast between the regression of Paton's ratios and the pro- 
gression of the ratios for all companies under Statistics of Income can- 
not be denied. In Paton's sample the companies under the $500,000 
level average around 1 1 percent while those over that level are not 
much above 8 percent. In the Statistics of Income figures the pro- 
gression is consistently upward from 2.4 percent loss for the smallest 
class to a 3.3 percent profit for the lairgest. 

Table 14. — Percentage return ' on assets by asset size: Paton's sample 1927-29 
and Statistics of Income universe 19S1—S6 

[Ratio of 3-year and 6-year aggregates, respectively] 



Paton's Sample, 1927-29 (341 manufacturing 
companies) 


Statistics of Income, 1931-36 (all manufacturing cor- 
porations) 




Number 
of com- 
panies 


Ratio of 
profit 1 
to assets 


Asset classes 


Ratio of profit ' to assets 


Asset classes 


Income 
companies 


No- 
income 
companies 


All com- 
panies 


Under $200,000... ■ 


78 
53 
85 
79 
46 


Percent 
11.34 
10.69 
7.30 
8.27 
8.60 


Under $250,000 

$250,000 to $500.000 

.$500,000 to $1,000,000. . 
$1,000,000 to $5,000,000. 
$5,000,000 and over 

All companies... 


Percent 
8.8 
9.2 
9.5 
9.0 
7.5 


Percent 
-10.2 
-6.5 
-6.8 
-4.9 
-1.7 


Percent 
-2.4 


$200,000 to $500,000 

$500,000 to $1,500,000 

.$1,500,000 to $5,000,000.... 
Over $5,000,000. 


1.1 
2.0 
2.4 
3.3 






All companies 


341 


9.21 


8.0 


-3.3 


2.6 



1 Including interest charges. 

Sources: Paton's Corporate Profits and U. S. Treasury's Statistics of Income and Source Book. 

Again, the dift'erence in time periods covered would not seem to 
account wholly for the discrepancy, but a peculiarity of Paton's 
sample maj^. Like Epstein's sample, this one, too, is limited to identi- 
cal companies — that is, the same companies are analysed in each of 



CONCENTRATION OF ECONOMIC POWER 33 

the 3 )^ears. Colonel Rorty, in a note to the N. B. E. R. publication 
(p. 77) comments that "the smaller concerns perhaps more often 
fail — and firms in positive distress have perhaps automatically been 
excluded from the reports * * * a true average of all small 
concerns might show different figures." In addition, one might infer 
that those firms which had their books audited would probably be 
the better companies. 

This leads us to the suspicion that Paton's sample follows the 
pattern of the more profitable concerns, and this suspicion is abetted 
if iiis ratios are compared with the income companies column under 
Statistics of Income (see table 14). If only firms making a profit 
are considered, the Statistics of Income ratios are also regressive with 
size, falling — not too persistently — from almost 9 percent in the small- 
est class to 7.5 percent in the largest. 

We may conclude that Paton's sample, like Epsteins,' represents 
primarily the profit-making companies, and that his conclusion respect- 
ing profitability classified by size applies to that class of corporations.^^ 
If one considers the profitable corporations, as Paton does, earning 
rates are modestly regressive with size; if one considers all corporations, 
as Statistics of Income does, the profit pattern becomes definitely 
progressive with size. 

Officers' compensation a qualifying factor. 

It is well known that compensation of officers, a sizable amount in 
the profit-and-loss statement of any concern, is particularly important 
in the case of small corporations. Moreover, in the case of such 
manufacturers, officers' compensation may consist not only of return 
for the managerial and labor function, but also of return on capital 
and for entrepreneurial risk-taking. In the large corporations the 
returns for these different functions are probably more clearly dis- 
tinguished as between salaries, wages, dividends, interest, and rent. 
Hence one might argue that a profit ratio which included not only 
interest but also co.mpensation of officers would be more consistent as 
between large and small corporations. Of course, the relative im- 
portance of the labor contribution of the officer of a small corporation 
is a qualifying factor, for in large corporations this contribution is 
deducted as a cost (wages) before determining even gross profits. 
From Statistics of Incom.e it is impossible to classify, for manufactur- 
ing corporations by asset size, the amount of compiled net profit plus 
interest plus officers' compensation (henceforth called, loosely, gross 
profit). Recourse to the Source Book of Statistics of Income, how- 
ever, gives us the additional break-down, making possible the ratios of 
gross profit to total assets which appear in table 15 for all manufac- 
turing companies, income companies and no-income companies. 

" Paton's sample may underrepresent the very small companies, while it is possible that differences in 
accounting procedures lead to part of this discrepancy in profit rates. For example, the auditors may allow 
more depreciation for the big companies than the B. I. R. regulations permit, and may not have allowed 
certain expenses for small corporations which they normally deduct on their income-tax returns. It would 
be surprising, however, if such difTerences actually accounted for all the divergency in trends. The fact 
of the matter seems to be that Paton's sample is characterized by the more profitable companies. 



34 



CONCENTRATION OF ECONOMIC POWER 



Table Ib.^Ratio of compiled net profit plus interest plus officers' compensation 
to total assets, for total manufacturng classified by asset size, income and no- 
incorrie companies, 1931-SS and 1934-36 averages. 



Asset classes 



Income 
companies 



1931-33 average 



No in- 
come 



All com-, 
panies 



1934-36 average ' 



Income 
companies 



No in- 
come 



All com- 
panies 



to $50,000 

$50,000 to $100,000 

$100,000 to $250,000 

$250,000 to $500,000 

$500,000 to $1,000,000 

$1,000,000 to $5,000,000.. 
$5,000,000 to $10,000,000. 
$10,000,000 to $50,000,000 

$50,000,000 and over 

All companies 



26.9 
19.0 
15.3 
12.8 
11.4 
9.4 
9.3 
7.5 
6.1 
8.0 



-4.5 
-3.2 
-4.1 
-4.1 
-4.4 
-4.4 
-3.7 
-3.8 



3.3 
3.4 
2.2 
1.7 
1.3 

.5 
1.0 

.6 
2.0 
1.5 



31.9 
21.8 
17.7 
15.2 
13.8 
11.4 
10.5 
9.2 
8.0 
10.3 



-1.5 
-2.2 
-1.9 
-1.5 
-1.0 
.5 
-.5 



15.5 
11.8 
9.8 
8.8 
8.2 
7.3 
7.0 
6.3 
5.7 
6.9 



1 Averages of annual ratios. 

Source: Statistics of Income and Source Book. 



Instead of the upward progression of the profit rate with increasing 
size — a trend found in the profit to capital ratios — we have here a 
regression of the ratio of gross profit to total assets with asset size 
(see table 15). This regression is not so pronounced as the aforemen-* 
tioned progression, but it is nonetheless distinct. In the first period, 
1931-33, for all manufacturing companies, the gross profit ratio falls 
from a level of 3.3 percent and 3.4 percent in the two bottom classes to 
0.6 percent in the $10,000,000 to $50,000,000 category. An exception 
to this tendency is the top class, $50,000,000 and over, which has a 
relatively high ratio of 2 percent. Regression also appears in the 
gross profit ratio for all manufacturing companies in the 1934-36 
period. The regression here covers the whole size class range, falling 
from 15.5 percent registered by the to $50,000 asset class and 
proceeding without interruption to a low of 5.7 percent for the 
$50,000,000 and over group. That the smaller manufacturers have a 
higher gross profit ratio than the large firms is plain from these data. 
Up to the $250,000 asset size these firms are definitely more profitable 
— defining profits in a gross sense to include not only interest paid but 
also compensation of officers — than above that level. However, the 
smallest class is the most profitable in only one period, that distinction 
being shared by the next size class in the other period. In addition, 
the top class was least profitable only in 1934-36; that position was 
held by the $1,000,000 to $5,000,000 class in the eariier period. 

If we consider income companies separately from no-income firms 
(see table 15) the regression is found for the former in both periods 
and for the latter in the second -period. The gross profit ratio of the 
no-income group in the 1931-33 period hovered around the 4 percent 
loss level in all size classes except the largest, which had a significantly 
smaller loss of 0.8 percent. In this one case some progression could be 
inferred from the fact that the smallest and largest size classes had the 
largest and smallest losses, respectively. 

If we consider now the gross profit ratios for the five industrial 
subgroups (see table 16), we can see that this regression found for all 



CONCENTRATION OF ECONOMIC POWER 35 

manufacturing exists also in each Industry. It is less marked in some 
(e. g. food, stone) than in others (e; g. textiles, metal), but it can be 
discerned in each. 

Table 16. — Ratio of compiled net profit plus interest plus officers' compensation to 
total assets for 5 manufacturing subgroups classified by asset size, income and 
no-income companies, 1931-33 and 1934-36 averages 1 



Asset classes 



Food 



1931-33 1934-36 



Textiles 



1931-33 1934-36 



Lumber 



1931-33 1934-36 



Stone 



1931-33 1934-36 



Metals 



1931-33 1934-36 



INCOME COMPANIES 



to $50,000.. 

$50,000 to $100,000 

$100,000 to $2,'i0,000- 

$250,000 to $500,000 

$500,000 to $1,000,000. 

$1,000,000 to $5,000,000.... 
$5,000,000 to $10,000,000... 
$10,000,000 to $50,000,000 . 

$50,000,000 and over 

Classes grouped 

All companies... 



NO-INCOME COMPANIES 



Classes grouped. 
All companies... 



ALL COMPANIES 



Classes grouped. 
All companies... 



22. 
17. 
14. 
13. 
12. 

8 9. 

UO. 

2 8. 

2 10. 



-3.9 
-2.4 
-3.1 
-2.4 
-2.7 
-4.1 

(») 

« 

(') 

-2.3 
-2.4 



4.7 
5.2 
4.5 
5.0 
5.4 
23.5 

(?) 

(') 

(2) 

5.9 
6.7 



27.6 
20.2 
16.7 
15.4 
14.1 
2 13.0 
2 11. 1 

(2) 
(?) 

10.8 
11.7 



1.9 

.0 

-.8 

-1.2 

-1.3 

(2) 

(2) 

(2) 

(2) 

.0 
-.2 



12.7 

10.7 
9.5 
9.4 
9.5 

(2) 

(») 

(2) 

(2) 

9.3 
9.4 



33.4 
22.0 
16.3 
13.1 
10.3 
8.4 
2 6.0 

(2) 
(2) 

5.4 
1 



34.6 
22.0 
17.3 
14.0 
12.1 
9.2 

(2) 
(') 
(2) 

7.2 
10.4 



-4.4 


10.9 


-4.1 


3.1 


-4.7 


-.4 


-3.9 


-1.7 


-4.6 


-2.5 


-4.1 


-2.2 


2-5.5 


2-2.8 


(2) 


w 


(2) 


(2) 


-4.6 


-2.4 


-4.3 


-1.1 


6.6 


20.2 


5.0 


13.7 


3.4 


10.2 


2.9 


8.2 


1.7 


7.1 


.9 


5.2 


2-1.4 


(2) 


(2) 


(2) 


(') 


(2) 


-.4 


4.3 


1.0 


6.4 



19.2 
14.6 
11.2 
8.8 
7.6 
(2) 

(2) 
(2) 
(2) 

5.5 
7.6 



-12.0 
-6.8 
-6.5 
-6.4 
-5.5 
2-5.0 
2-3.3 

(2) 
(») 

-3.3 

-4.2 



-6.2 
-2.7 
-2.9 
-3.7 
-3.0 

(») 

(?) 

(2) 

(2) 

-2.4 
-2.7 



24.9 
16.2 
13.7 
11.3 
9.4 
27.3 
24.9 
(2) 
0) 
5.5 
8.0 



-1.8 
-2.6 
-2.2 
-2.2 
2-1.5 
2-1.0 

(?) 

C') 
-1.2 
-1.4 



9.1 
5.9 
5.1 
4.1 
3.3 
2 2.7 
2 1.7 
(2) 
W 
1.8 
2.8 



17.9 
14.8 
12.7 
11.4 
8.6 
7.3 
6.0 

(2) 
(2) 

5.1 
6.5 



-7.0 
-4.2 
-4.8 
-4.7 
-3.8 
-3.4 
-2.9 

(2) 

(?) 
-1.8 
-3.1 



-2.8 
-.5 

-1.7 

-1.7 
-.6 

-1.2 
-.5 

(2) 
(2) 

1.3 
-.1 



24.7 
18.4 
15.0 
12.7 
11.5 
8.7 
11.4 
2 8.4 

211.3 

9.3 
10.1 



-.2 
-1.1 
-2.1 
-1.9 
-2.2 
-1.7 
-2.2 
2-. 9 



-.9 
-1.5 



7.5 
6.3 
6.2 
4.9 
5.5 
4.3 
6.3 
25.9 
2 11.3 
7.4 
6.2 



24.9 
18.6 
13.8 
11.8 
10.0 
7.8 
7.7 
7.6 
5.9 



-6.0 
-4.0 
-4.6 
-5.1 
-4.7 
-5.1 
-3.9 
-4.6 
-1.6 



-3.0 



-.4 
.8 
-.5 
-1.0 
-1.3 
-2.2 
-1.3 
-1.8 
.3 



31.7 
22.6 
18.1 
16.3 
13.9 
11.9 
10.0 
8.6 
8.9 



ia2 



4.6 

.4 

-.7 

-1.4 

-1.6 

-2.3 

-2.1 

-1.2 

.2 



.-.7 



14.8 
12.1 
10.1 
9.0 
8.3 
7.6 
6.6 
5.6 
6.5 



6.9 



' Averages of annual ratios. 
Source: Statistics of Income and Source Book. 



2 Classes grouped. 



It is in this gross profit ratio that we m.ay have at least a partial 
explanation of why these sm.all firm.s, which by ordinary standards of 
profitability are frequently "in the red", persist in staying in business 
and operating. Even the lumber group, whose ratio of com.piled net 
profit to net worth was negative in the smaller size classes throughout 
the period 1931-36, was actually showing a positive ratio (around 1.5 
percent in the sm.allest size classes) of com.piled net profit plus interest 
plus com.pensation of officers to total assets. That is to say, these 
sm.all firm.s whose equity shares are owned largely by their officers 
feel no com.pulsion for liquidating just because, on a norm.al accounting 
basis, there is no incom.e left for dividends. The owners receive their 



259845— 40— No. 15- 



36 CONCENTRATION OF ECONOMIC POWER 

remuneration in their position as ofl&cers.^^ Probably this officers' 
compensation in the sm.all com.panies is an overpaym.ent for the m.an- 
agerial function, som.e part of it being, economically, return on capital, 
and another part wages. Without ownership and m.anagem.ent being 
separated in fact, it is im.possible to segregate their respective rem.uner- 
ation. In an analysis of the influence of asset size of com.pany on 
profitability, consideration only of the rate of profit on capitalization 
is biased in favor of the big com.panies. The gross profit ratio is needed 
as a qualification of the other ratio; unfortunately it is too far rem.oved 
from, the concept of "end result" to present a com.plete picture all by 
itself. 

LARGE CORPORATIONS 

One of the peculiar advantages of using m.aterial for identical cor- 
porations rather than for a varying num.ber of corporations is that 
interyear com.parisons are thereby m.ade m.ore revealing. If to this 
advantage is added the feature of having available the individual data 
for particular corporations in a sam.ple study, it becom.es possible to 
derive frequency counts and cross-classifications of the particular 
relationship under consideration. The Standard Statistics com.po.T.ite 
of 400 corporations covering the period 1927 through 1938, has both of 
these advantages. They are illustrated in the accom.panyins table 17 
which classifies these corporations according to the size of their profit 
ratio in each of the years 1927-38. The definition of profit ratio 
em.ployed in this case is the broad one of net profit before fixed charges 
to total invested capital. The denom.inator is the sum. of bonded debt 
and net worth. Six different size classes of this profit ratio are 
employed, ranging from, a 5-percent loss or m.ore, up to a 15-p(^rcent 
profit or m.ore. Each of these classes except the open-end classes 
covers a range of 5 percent. 

The incidence of the depression beginning in the fall of 1929 is 
clearly evident from, this table. Even these 400 corporations, the 
leading corporations in Am.erica today, were hard hit by the fall in 
business activity which com.m.enced in the early thirties and has only 
recently given way to recovery forces. In the 3 years of the 1920's 
covered by this table the corporations with a loss of 5 percent or m.ore 
were negligible in num.ber. In the opening year of the last decade, 
however, the m.oney losers suddenly becam.e significant, and by 1932 
there were m.ore corporations in the big-loss category than in any other 
of the table. The recovery since 1932 has been quite sharp as the 

>« On the basis of Statistics of Income it is impossible to test this thesis statistically, hut some support for 
it may bo gained from the followine figures showing the average compensation of officers per corporation by 
asset size, for total manufacturing in 1936: 

Average com- 
pensation per 
Asset size class: corpoTotion 

to $50.000 $3,981 

$50,000 to $100,000 . ^ 8,127 

$100,000 to $250,000 _ -. 11,857 

$250,000 to $.500,000 - 17,225 

.$500,000 to $1.000,000 ._ - - — - 22,913 

$1,000,000 to .15.000,000.- ..--: 36,569 

$5,000,000 to $10,000,000 66,851 

110,000,000 to $50,000,000 107.408 

$50,000,000, and over - -- 235.545 

Total manufacturing _ 10, 871 

Source: Statistics of Income and Source Book. The smallest size corporations probably have no more 
than one full-time officer, and a compensation of almost $4,000 would seem sufficient to keep him working 
even if he got no dividend return on his equity investment. In the next size class, 2, and in the third class, 
3, full-time officers could get as much. 



CONCENTRATION OF ECONOMIC POWER 



37 



figures in each of the classes indicate; but the fall again in 1938 also 
cannot be ignored. 

Table IV. — Frequency disirihvtion of profit ratio,^ Standard Statistics Composite 
of 400 companies, 1927-38 





5 percent 


0to5 


0to5 


5 to 10. 


10 to 15 


15 percent 


Year 


loss or 


percent 


percent 


percent 


percent 


profit or 




more 


loss 


profit 


profit 


profit 


more 


1927. 


3 


17 


66 


120 


97 


97 


1928 


3 

7 


9 
15 


51 
43 


134 
117 


97 
109 


106 


1929... 


109 


1930 


32 


37 


109 


105 


67 


50 


1931 


69 
113 
47 
32 
19 


78 
103 
85 
54 
38 


116 
97 
128 
151 
121 


76 
55 
87 
94 
122 


33 
18 
33 
44 
64 


28 


1932 


14 


1933 . 


20 


1934 


25 


1935 . 


36 


1936.... 


12 


14 


79 


144 


82 


69 


1937 


17 


13 


73 


151 


71 


75 


1938.. 


53 


49 


124 


110 


43 


21 



• Ratio of net profit (before fixed charges) to total invested capital (i. e., funded debt plus ^t worth). 
Source: Standard Statistics Co. Tabulated at Income Tax Study, Philadelphia. 

It will be observed that the class with the most number oi corpo- 
rations is that of 5- to 10-percent profit in the first 3 years of the period 
and in the years 1935, 1936, and 1^37. This distinction was shared 
in 1930, 1931, 1933, 1934, and 1938 by the 0- to 5-percent profit cate- 
gory. The precipitous decline in 1932 has already been commented 
upon. The 113 corporations in the 5-percent-loss-or-more category 
in this year outnumber those in any other profit category that year. 
The profit class with the smallest number of corporations is that of 
5-percent loss or more in the first 4 years, that of 15-percent profit 
or more in the next 4 years, that of 5-percent loss or more in the next 
2 years, 1935 and 1936, that of 0- to 5-percent loss in 1937, and, finally, 
that of 15-percent profit or more in the year 1938. That is to say, the 
least-frequent category jumps from one end of the range to the other 
in response to changes in the business picture. 

The profit ratio presented in this table gives a better clue to the 
financial solvency of a corporation than does the ordinary profit ratio 
of net income after bond interest to capital stock outstanding. When 
the ratio of net profit before fixed charges to total invested capital falls 
below the 5-percent profit level the corporation may be in financial 
difficulty if it has outstanding any interest-bearing securities. If a 
corporation, of course, has no fixed charges it would perhaps not be 
financially embarrassed under such circumstances. However, it seems 
safe to say that the bulk, at least, of the corporations covered in the 
first three columns of table 17, that is, corporations with a loss of 5 per- 
cent or more on up to corporations with a profit of to 5 percent, are 
in financially embarrassing circumstances. 

Conversely, those c.orporatidlis in the last three columns, that is, 
those with a profit of 5 percent or more, are probably in a tolerable 
financial condition. This is not to deny the fact that those with a 
ratio of only 5 to 10 percent may find their situation somewhat ticjc- 
lish, especially if their capital structure involves considerable trading 
on the equity. 

It is interesting to observe the number of corporations in eq-fh of 
these two categories, that is, those whose financial situations m,ay be 



38 CONCENTRATION OF ECONOMIC POWER 

characterized as dangerous, and those, whose financial situation is 
apparently relatively secure. For the first 3 years of the period, more 
than three-fourths of the corporations were in the tolerably secure 
category. This proportion fell decidedly in 1930 when only slightly 
more than a half were in the safe category. By 1931 only about a 
third were in this position, and in 1932 somewhat less than a fourth 
could consider their profit situation as financially sound. The recov- 
ery from the low of 1932, however, was not only rapid, but persistent. 
The year 1933 was up to the 1931 level again, while 1934 was slightly 
higher than 1933. In 1935 the proportion was on a par with 1930, 
while in 1936 and 1937 almost three-fourths of the corporations were 
again in the safe category. The proportion in this category fell again 
in 1938 to significantly less than one-half of the total number of cor- 
porations, that is to say, almost back to the 1934 level. 

So much for the over-all picture presented in table 17. In tables 
not presented here for lack of space it is possible to observe which 
industries are characterized by the money-losing firms, and which by 
the more profitable firms. In 1927 there were only two industrial 
groups in which there were firms with a loss of 5 percent or more: 
Two makers of autos and trucks and some member of a so-called non- 
manufacturing group comprising coal, retail trade, and theaters. In 

1928 a maker of auto parts, a sugar producer, and a textile manufac- 
turer were the only firms in the 5-percent-loss-or-more category. By 

1929 there were several more in that group: Two makers of auto parts, 
one of auto tires, one of electrical equipment, one miscellaneous manu- 
facturer, and two textile manufacturers. By 1930 practically all in- 
dustrial groups in the composite were represented in the sizable-loss 
category except advertising and printing, beverages, chemicals^ con- 
tainers, food products, machinery, medicine, metals, office equipment, 
paper products, railroad equipment, steel and iron, and tobacco prod- 
ucts. By the trough of the depression in 1932 there were only six 
industrial groups not represented in the 5-percent-loss-or-more cate- 
gory: Beverages, containers, medicines, chemicals, paper products, 
and shipping and shipbuilding. Of these six, the first three were even 
spared inclusion in the O-to-5-percent-loss group. By 1937 the num- 
ber of industries represented in the big-loss category had thinned out 
noticeably, but the money losers became again more prominent in the 
following- year. 

One is tempted to draw from these observations conclusions con- 
cerning industrial differences in ability to maintain earning power 
during business depression. A certain amount of such reasoning on 
the basis of the above data is probably warranted, but the reader is 
warned that the number of firms in these industrial categories is fre- 
quently so small that profitability conclusions based thereon could 
hardly be said to apply to the entire industry. Of more significance 
are the over-all figures covering the 400 corporations presented in 
table' 17. 

SMALL MANUFACTURING CORPORATIONS 

An interesting picture of the gyrations in profitability for a sam.ple 
of srn.all m.anufacturing corporations over the period 1926-36 is pre- 
sented in table 18. The profit ratios for all corporations in both the 
original sam.ple of 1,000 in 1926 and in the supplem.entary sample of 
300 in 1930 are presented in this table. The profit ratio, net income 



CONCENTRATION OF ECONOMIC POWER: 39 

tc capital stock, gives a general idea of the earnings of the corpora- 
tions based upon the invested equity capital. For a group of large 
corporations such a ratio would probably not be as significant as the 
one presented in the acconn.panying table for small corporations, 
because many large corporations not only use par-value stock but also 
are wont to change the stated value of their stock at will.^^ Such ac- 
counting m.anipulations are not so frequently encountered in the 
financial statem.ents of small corporations, and it is therefore probably 
reasonable to associate the capital stock as listed on the balance sheets 
of these sm.all corporations with the original investm.ent of the owners 
of the enterprise. 

The profit ratios in table 18 are broken down into five categories: 
More than 5 percent loss, to 5 percent loss, to 5 percent profit, 5 
to 10 percent profit, and finally, 10 percent profit or over. The indus- 
tries covered are bakeries, men's clothing, furniture, stone-clay, and 
m.achine tools and accessories. The totals for each year are subdivided 
into firm.s that failed and firms that survived throughout the period 
1926-36 in the case of the original sam.ple, and 1930-36 in the case of 
the supplementary sam.ple. 

The proportion of these sm.all m.anufacturing corporations losing 
money is indicated in the third column, percent of total. This pro- 
portion for the entire sample hovered around 40 percent for 1926 
through 1929, and by 1932 had risen to 86 percent. That is to say, 
at the bottom, of the depression 9 out of 10 of these sm.all m.anufactur^ 
ing corporations were unable to earn any net incom.e on equity capital. 
By 1936 profits had sufficiently recovered so that only 45 percent were 
in the loss category. In each of the years, 1930-35, more than one-half 
of the corporations failed to m.ake money. 

In the late 1920's the most profitable industry was m.achine tool, 
m.easured in term.s of relative proportion of m.oney makers. In the 
year 1926, the tool manufacturers had the fewest m.oney losers, rela- 
tively: Furniture m.anufacturers were second high, while bakeries, 
m.en's clothing concerns, and stone-clay manufacturers were in the 
group with a relatively sm.all proportion of rnoney makers. By 1932 
the positions had been reversed, to a large extent. Bakeries were in 
the top rank, having the largest relative number of profitable firms. 
Men's clothing and machine tools were in the next highest category, 
while the stone-clay producers and the furniture m.anufacturers were 
in the poorest position. By 1936, bakeries, men's clothing, and 
machine tools did equally well. The fumjture group was in the 
middle with a one-to-one proportion between money m.akers and money 
losers. Stone-clay producers were still in the poor side with less than 
50 percent of the corporations making a profit in 1936. 

80 m.uch for the relative prop'^rtion between the money losers and 
the m.oney m.akers. Now 1 ' us examine the com.position of and shift 
in the top group, those m.aking a profit of 10 percent or over. In the 
late 1920's, 30 to 40 percent of the total number of corporations were 
in the high-profit class. Of the 975 firm.s in the sam.ple in 1926, 352, 
or 36 percent, made a profit of 10 percent or m.ore. In 1929, 280 of the 
742 firms, that is 38 percent, were in the top profit category. There- 
after, however, the proportion fell sharply. By 1932 the 43 firm.s out 
of 75S in this category constituted only 6 percent,. The proportion 
rose slowly and reached 10 percent in 1933, stayed at about the same 

" Cf. table 65 in ch. 5. 



40 CONCENTRATION OF ECONOMIC POWER 

level in 1934, rose to 17 percent in 1935, and finally reached 24 percent 
in 1936. This proportion of the firms in the top group in 1936, how- 
ever, is still considerably below the proportion enjoying profits of 10 
percent or more in, 1926, 1927, 1928, and 1929. The m.achine tool and 
accessory m.anufacturers had the largest num.ber relatively speaking 
in this top-profit category in 1926, 1928, and 1929. Bakeries held this 
position in 1927, 1930-34. Machine tools regained the position in the 
last 2 years, 1935 and 1936. As one would expect, the corporations 
in the sam.ple which failed som.e tim.e during the period covered pre- 
dom.inate in the m.oney-losing group, and the corporations which 
survived throughout the period predominate in the m.oney-m.aking 
group. Before the depression about 50 percent of the failures and 
about a fourth of the survivors were in the m.oney-losing category. 
With the onset of poor business in 1930, this spread between the rela- 
tive proportions of failures and survivors in the m.oney-losing category 
narrowed. By 1932, there were almost the same proportions of each 
group in the money -losing category; that is to say, 89 percent of the 
failures and 85 percent of the survivors lost money in that year. In 
1933 and succeeding years the spread between the groups widened. 

It may be observed from the accompanying table that 163 of the 574 
failures were in the 10-percent-profit-and-over category in 1926. 
When it is recalled that all of these corporations did not fail immedi- 
ately — that is, that some of the 163 corporations in the 10-perccnt- 
and-over group probably did not fail until 1935 or 1936 — the fact that 
there were almost a third of the firms that failed in the highest-profit 
group in 1926 need not prove startling. The proportion falls con- 
sistently as we progress forward to 1936, which jibes with what one 
would anticipate. In 1928 a particularly sharp fall occurred in the 
number of failures in the 10-percent profit and over category. In the 
years after 1930 this group dwindled to a negligible number. The 
proportion of survivors in this top-profit class started out in 1926 on 
about the same level as the proportion of failures in that category. 
In the next 2 years the proportion of survivors in this top class lost 
ground pari passu with the proportion of failures in the top class. In 
1929, however, the proportion of survivors shot upward to a point 
slightly above the 1926 level, while that of failures continued on the 
decline. The proportion of survivors in the highest-profit class fell 
again until 1932, after which it started rising slightly and by 1936 was 
practically back to the 1926 level. 

This frequency distribution of the profit ratios for a sample of small 
firms is not strictly comparable to that for the large corporations pre- 
sented above, since the former ratio is more "net" than the latter. 
However, even allowing for this discrepancy, dift'erences between the 
proportions of profitable to unprofitable firms appear. Assuming that 
the Standard Statistics firms reporting a loss plus those reporting a 
profit of less than 5 percent on total invested capital correspond roughly 
with the small manufacturers showing a loss on invested equity,'* we 
find that a smaller proportion of the large than of the small firms fall 
in this category. In 1927 the 22 percent for large firms compares with 
the 45 percent for small ones, in 1932 it is 78 percent against 86 percentj, 
and in 1936, 26 percent against 45 percent. 

" An hypothesis probably biased in favor of the small manufacturers. 



CONCENTRATION OF ECONOMIC POWER 



41 



Table 18. — Frequency distribution of ratio of net income i to capital stock by selected 
industries, sample of small manufacturing corporations, 1926-36 



Industry and year 



1926 

Bakeries - 

Men's clothing — 

Furniture. 

Stone and clay 

Machine tools 



Total -- 

Failures.- - 
Survivors- 

1927 

Bakeries. -■ 

Men's clothing 

Furniture 

Stone and clay 

Machine tools 



Total 

Failures... 
Survivors. 

1928 
Bakeries 

Men's clothing 

Furniture 

Stone and clay 

Machine tools 



Loss 



5 percent 
and over 



Total 

Failures... 
Survivors. 

1929 
Bakeries 

Men's clothing 

Furniture 

Stone and clay 

Machine tools 



Total. 

Failures.. - 
Survivors. 

1930 

Bakeries 

Men's clothing 

Furniture... 

Stone and clay 

Machine tools. 



Total .... 

Failures... 
Survivors. 

1931 
Bakerie'S 

Men's clothing 

Furniture - 

Stone and clay 

Machine tools 



Total 

Failures .. 
Survivors. 

1932 

Bakeries 

Men's clothing 

Furniture 

Stone and clay 

Machine tools 



308 

238 

70 



46 
69 
67 
64 
56 

302 
214 



Total 

Failures.. - 
Survivors . 



0to5 
percent 



277 
198 
79 



213 
144 
69 



64 
84 

111 
90 

106 



455 
232 
223 



111 
109 
119 



506 
213 
293 



90 
93 
117 
113, 
139 



552 
161 
391 



103 

58 
45 



i^ercent 
of total 



102 
41 
61 



102 
30 
72 



Profit 



0to5 
percent 



136 

77 
59 



138 



5 to 10 
percent 



10 percent 
and over 



125 
53 
72 



no 

51 
59 



114 
35 

79 



100 
30 
70 



352 
163 
189 



Total 
number 
com- 
panies 



184 
205 
200' 
190 
19© 



295 
131 
164 



92 

174 



975 
574 
401 



167 
184 
184 
182 
186 



903 
501 
402 



163 
i5» 
163 
156 
175 



810. 
408 
402 



280 
87 
1«3 



150 
133 
145 
145 
169 



187 
51 
136 



109 
26 
83 



742 
342 
400 



186 
189 
188 
176 
200 



390 
549 



168 
156 
169 
164 
195 



862 
303 
549 



148 

132 
142 
149 
187 



758 
214 
544 



1 Net economic income (before any dividends) . 



42 



CONCENTRATION OF ECONOMIC POWER 



Table 18 —Frequency distribution of ratio of net income to capital stock by selected 
induUiies, sample of small manufacturing corporations, 1926-36 — Continued 





Loss 


Profit 


Total 
number 

com- 
panies 


Industry and year 


5 percent 
and over 


0to6 
percent 


Percent 
of total 


Oto5 
percent 


5 to 10 
percent 


10 percent 
and over 


1933 
Bakeries .. - 


d7 
44 
62 
87 
93 


38 
19 
25 
32 
42 


68 
55 
69 
90 
76 


17 
30 
19 
6 
20 


7 
9 
5 
3 
8 


21 
13 
16 
5 
14 


140 


Men's clothing-- .- 

Furniture.-. 


115, 
127 
133 


Machine tools 


177 






Total 


343 

88 
255 


156 
34 
122 


72 
84 
69 


92 
11 
81 


32 

5 

27 


69 

7 

62 


692 


Failures 


146 


Survivors 


647 






1934 
Bakeries 


62 
36 
43 
60 
52 


30 
20 
36 
34 
56 


69 
58 
71 
76 
64 


17 
27 
16 
12 
28 


8 

:§ 

6 
17 


17 
8 
8 
11 
17 


134 


Men's clothing.. 


97 


Furniture .- - . 


112 


Stone and clay. 


123 


Machine tools ^ 


170 






Total 


253 

50 

203 


176 
22 
154 


68 
80 
65 


99 
11 

88 


47 

5 

42 


61 

2 

69 


636 


Failures.. . 


90 


Survivors.- . . 


546 




-■* 


1936 
Bakeries . . 


49 
24 

38 
46 
38 


21 
29 
21 
35 
40 


59 
59 
55 
68 
48 


18 
22 
24 
16 
34 


6 

5 
7 
8 
15 


24. 

10 

17 

14 

37 


118 


Men's clothing _. . ... 


90 


Furniture 


107 


Stone and clay . . 


119 


Machine tools 


164 






Total.. 


195 
23 
172 


146 

17 

129 


57 
76 
55 


114 

7 

107 


41 

4 

37 


102 

2 

100 


598 


Failures . 

Survivors. 


53 
546 






1936 
Bakeries 


25 
14 
22 
30 
3D 


20 
20 
18 
29 
35 


43 

43 
50 
54 
43 


16 
30 
25 
18 
28 


13 
6 

14 
7 

13 


32 
9 
22 
26 
44 


106 


Men's clothing 


79 


Furniture 


101 


Stone and clay 


110 


Machine tools .... 


150 






Total 


121 

1 
120 


122 



122 


45 
100 
44 


117 



117 


53 

53 


133 



133 

1 


546 


Failures 


1 


Survivors 


645 



Source: Proposal 14, Income-Tax Study, Philadelphia. For basic data classified by asset size and area 
see tables 16 and 17 in Appendix F. This table was a preliminary test tabulation done at the Income 
Tax Study. The numbers of corporations in each category are not final. 



CHAPTER III 

DIVIDENDS OF AMERICAN MANUFACTURING CORPORA- 
TIONS 

An analysis of the profitability of corporations, as distinguished from 
unincorporated enterprises, is made peculiar by the fact that only a 
part of the story is revealed by the net income of the corporate entity. 
The rest of the story is not uncovered until we find out how the stock- 
holders have fared. The stockholder's fate can be viewed from two 
angles— capital and income. He is interested in the marketable values 
of his investment as well as in the income flowing from his holdings. 
Analyst? of the former requires information on stock quotations, which 
exist fol" only a modest proportion of the corporations covered in this 
survey and are readily available for still a smaller fraction. Analysis 
of the latter requires information on dividend disbursements, which is 
available, in ranging degrees of detail, for all the corporations in the 
Statistics of Income and Standard Statistics compilations. This sec- 
tion will be concerned with this latter segment of the problem, and is 
limited to cash dividends, stock dividends being ignored. The mate- 
rial will first be presented for all manufacturing corporations and then, 
in more detail, for the 400 large corporations. Fmally, some of the 
factors influencing dividend policy will be singled out for special 
treatment. 

ALL MANUFACTURING CORPORATIONS 

Two aspects of the dividend picture are covered in Statistics of 
Income. One concerns the proportion of earnings which American 
manufacturing corporations pay out to their stockholders in the form 
of cash dividends. The other is the ratio of this return which the 
stockholders receive in .cash (i. e., cash dividends paid) to the total 
equity of the shareholders in the corporations (i. e., net worth). It is 
convenient in calculating the former, so-called disbursement, ratio, to 
consider only those corporations wliich make a profit, for otherwise 
we would get problematical negative ratios from dividing cash divi- 
dends paid by net loss suffered.^ 

Table 19 presents the disbursement ratio for the years 1926-36, for 
all manufacturers making a net profit and for each of the five sub- 
groups. Over the entire period the whole group disbursed about 
three-fourths of their profits, after Federal incom.e taxes, in the form 
of cash dividends on preferred and common stock. In textiles the 
proportion was 62 percent while in lumber it was 78 percent. Tem- 
poral variation in this ratio is greater than spatial, running for all 
manufactures from 56 percent in 1926 to 105 percent in 1932. The 
lumber group had the widest amplitude of fluctuation, varying from 
34 percent in 1933 to 109 percent in 1930, while stone was next with 

1 A table giving the disbursement ratio for all rompanles comb'ned (i. e., Income and no-income firms) 
is presented below, primarily by way of illustration. 

43 



44 



CONCENTRATION OF ECONOMIC POWER 



a low of 51 percent in 1928 and a liigh of 123 percent in 1932. Food 
had the most stable ratio, varying from 55 percent in 1926 to 96 per- 
cent in 1932. The disbursement ratio usually reached a high level in 
the early stages of depression, because the stability of dividends is 
greater than that of net income. It must be remem.bered that as soon 
as a corporation shows a loss it is not included in table 19, even though 
many such corporations continue to pay dividends. Since this dis- 
hursement ratio comprehends both preferred and common shares, its 
bottom level is relatively high because of the strong pressure to pay 
preferred dividends if any profit at all is miade. 

Table 19. — Ratio of cash dividends paid to compiled net profit (after Federal tax) 
for total manufacturing and 6 subgroups, income companies only, 1926-36 ^ 





Total 
manufac- 
turing 


Food 


Textiles 


Lumber 


Stone 


Metals 


1926 _ 


Percent 
55.6 
62.4 
60.7 
60.2 
92.5 
97.0 
104.6 
71.9 
75.4 
70.6 
83.7 
59.7 
91.5 
76.6 
75.9 


Percent 
55.1 
62.6 
60.3 
65.6 
80.8 
82.1 
95.8 
76.7 
78.1 
75.9 
83.0 
60.9 
83.9 
79.0 
74.2 


Percent 
53.5 
47.8 
55.0 
54.6 
82.5 
83.4 
78.4 
31.6 
67.0 
68.2 
66.6 
52.7 
69.0 
63.9 
61.7 


Percent 
70.2 
81.2 
74.4 
70.6 

108.5 
94.0 

103.9 
33.5 
67.0 
80.4 
78.6 
74.1 
85.0 
75.3 
78.4 


Percent 
56.0 
57.5 
50.8 
55.7 
84.3 
90.6 
123.0 
63.9 
71.7 
68.2 
82.5 
55.0 
90.5 
74.1 
73.1 


Percent 
52.6 
66.2 
57 5 


1927 :.... 


1928 


1929 .. 




1930 


93 4 


1931... 


108 5 


1932 

1933... 


108! 8 
72 3 


1934. 


79 7 


1935 


60 9 


1936 


76 


1926 to 1929! , 


56 9 


1930 to 1933 2 


95 8 


1934 to 1936 «.. ... 


72 2 


1926 to 1936 2. 


75 2 







' All reporting corporations with net income. 
Source: Statistics of Income. 



» Averages of annual ratios. 



The disbursement ratio of income companies exhibits a consistent 
variation with asset size, the smaller corporations paying out a smaller 
proportion of their Earnings (see table 20). Over the 1931-36 period 
as a whole, for total manufacturing, the ratio rises regularly from 46 
percent in the 0-$50,000 asset class to 100 percent in the $50,000,000 
and over bracket. This consistent progression of total manufactur- 
ing's percentage also exists in the two periods 1931-33 and 1934-36 as 
well as in each of the years 1931-36. In each year there is a slight 
irregularity in the progression, but this is negligible and does not 
vitiate the conclusion that among income companies the large manu- 
facturers pay out a larger share of their net earnings in the form of 
dividends than do the small firms. This conclusion dovetails with an 
earlier observation on the role played by officers' compensation. 

There is no reason to believe that this disbursement ratio loses its 
progressive character when broken up by industrial subgroups. 
Tables, not published here for lack of space, show that the experience 
of total manufacturing is typical of that for each of the five industrial 
subgroups covered in this study. 



CONCENTRATION OF ECONOMIC POWER 



45 



Table 20. — Ratio of cash dividends paid to compiled net profit (after Federal tax) 
for total manufacturing classified by asset size, income companies only, 1931-36 ' 



Asset classes 



1931 


1932 


1933 


1934 


1935 


1936 


1931-33 ' 


1934-36* 


Percent 


Percent 


Percent 


Percent 


Percent 


Percent 


Percent 


Percent 


36.6 


56.0 


34.6 


53.8 


38.0 


58.0 


42.4 


49.9 


48.6 


59.5 


25.3 


42.1 


39.9 


69.4 


44.5 


50.5 


63.2 


60.6 


31.0 


39.3 


45.5 


71.6 


51.6 


52.1 


70.3 


71.0 


32.2 


49.0 


50.9 


73.9 


57.8 


57.9 


78.8 


76.0 


37.7 


61.1 


58.3 


70.6 


64.2 


63.3 


78.9 


83.1 


47.1 


75.7 


64.1 


71.0 


69.7 


70.3 


92.4 


92.3 


54.2 


66.9 


77.1 


74.3 


79.6 


72.8 


98.3 


100.0 


75.8 


88.3 


84.2 


81.0 


91.4 


84.5 


112.0 


126.9 


104.6 


81.9 


72.7 


100.0 


114.5 


84.9 


97.4 


104.8 


71.6 


75.1 


70.6 


84.0 


91.3 


76.6 



1931-36 « 



to $50,000 

$50,000 to $100,000 

$100,000 to $250,000 

$250,000 to $500.000. ..... 

$500,000 to $1,000,000 

$1,000,000 to $5,000,000... 
$5,000,000 to $10,000,000 
$10,000,000 to $50,000,000 

$50,000,000 and over 

All companies 



Percent 
46.2 
47.5 
51.9 
57.9 
63.7 
70.0 
76.2 
87.9 
99.7 
83.9 



' All net income corporations submitting balance sheets. 
' Averages of annual ratios. 

Sources: Statistics of Income and Source Book. 

If income and no-income companies are grouped together, the dis- 
bursement ratio undergoes wild fluctuations. Table 21 presents the 
ratio of cash dividends paid to compiled net profit (after tax) for 
total manufacturing, including income and no-income companies 
combined, 1926-36. This disbursement ratio jumps from a level of 
70 percent in 1929 to 222 percent in 1930, a rise which is wholly 
accounted for by a drastic fall in the denominator (compiled net profit). 
Dividends remained almost the same in the 2 years. In the next year 
the ratio, loosely speaking, passed the infinity mark and became a 
negative 438 percent, which means merely that dividend disbursements 
were slightly more than four times the compiled net loss in 1931. The 
ratio was still negative in 1932, but became positive, at 494 percent 
in 1933. Thereafter it declined to 95 percent in 1936. An average 
of the annual ratios excluding 1931 and 1932 comes out at 150 percent, 
that of the annual ratios for aU 11 years is meaningless. Such ratios 
have some significance, but the fact that they may very easily rise to 
infinity tends to make them misleading. 

Table 21. — Disbursement ratio ' for total manufacturing including income and no- 
income companies, 1926-36 



Year: 

1926 

1927 

1928 : 

1929 

1930 221.9 

1 93 1 2 438. 3 

1932 2 82. 1 



Ratio {percent) 

69.9 

85. 4 

75.8 

69. 6 



Year: Ratio {percent) 

1933 494. 1 

1934 138.0 

;935 103.4 

1936 .- 94.7 

Annual average: 

1926-30,1933-36 150.3 



1 Cash dividends paid to compiled net profit after tax. 

2 Deficit. 

Source: Statistics of Income. 

It is one thing for dividends to comprise such and such a percentage 
of net income, but it is another thing for dividends to constitute such 
and such a percentage return on total stockholders' equity. This 
latter relationship — cash dividend return on total equity — is summar- 
ized by the ratio of cash dividends paid to net worth. This ratio, 
covering all companies classified by industry, is presented for the 
years 1926-36 in table 22. The asset size break-down of this ratio 
.for total manufacturing classified into income, no income, and all 



46 



CONCENTRATION OF ECONOMIC POWER 



companies for the years 1931-36 is presented in table 23. Since this 
ratio is a derivative of two ratios previously discussed (i. e., dividends 
paid to compiled net profit and compiled net profit to net worth), it 
will be considered in relatively brief compass here.^ 

Manufacturing corporations over the period 1926-36 paid to their 
preferred and common stockliolders cash dividends equivalent to 
5.2 percent of the total owners' equity. One industrial group, food, 
paid out distinctly more than this percent, 7.7 percent, while lumber 
paid out much less, 2.9 percent. Textiles and stone were also low, 
while metals was about average. Cyclically the ratio varies directly 
with business activity, being high in prosperity and low in depression. 
The all-manufacturers ratio hit a pre-depression high of 6.3 percent in 
1929, fell to 2.7 percent in 1933, and then reached an all-time high of 
7.5 percent in 1936. Each of the industry groups showed all-tiroe 
peaks in 1936 except lumber, and even this exception would be elim- 
inated if the secular decline in lumber's ratio were removed. This is 
some evidence, even though not conclusive, that the undistributed 
profits tax influenced the dividend policy of these manufacturing 
corporations in the direction of increased disbursements relative to net 
worth. We have already seen (supra, table 19) that there was such 
an increase relative to compiled net profits. 

Table 22. — Ratio of cash dividends paid to net worth, for total manufacturing and 

subgroups, 1926-36 





Total 
manufac- 
turing 


Food 


Textiles 


Lumber 


Stone 


Metals 


1926 


5.5 
5.4 
6.0 
6.3 
6.1 
4.8 
3.0 
2.7 
4.1 
5.8 
7.5 
5.8 
4.2 
5.8 
5.2 


5.4 
5.7 
5.9 
6.4 
7.3 
7.9 
6.7 
6.8 
9.2 
10.7 
12.6 
5.9 
7.2 
10.8 
7.7 


4.2 
4.0 
4.0 
3.9 
3.2 
2.7 
1.7 
1.8 
2.9 
3.1 
5.7 
4.0 
2.4 
3.9 
3.4 


4.6 
4.1 
4.2 
3.9 
2.8 
1.7 
.9 
.8 
2.1 
2.3 
4.0 
4.2 
1.6 
2.8 
2.9 


6.0 
4.7 
4.4 
4.9 
4.1 
3.5 
1.9 
1.7 
3.1 
4.4 
7.2 
5.0 
2.8 
4.9 
4.2 


5.7 


1927- 


5.9 


1928.. 


6.1 


1929 


6.9 


1930 


6.0 


1931 


4.6 


1932 ■ 


2.4 


1933- 


l.J 


1934-.. 


3.7 


1935 


5.8 


1936 


9.8 


1926 to 29 • 


6.2 


1930 to 33 I 


3.5 


1934 to 36 1... 


6.4 


1926 to 361... 


5.3- 







1 Averages of annual ratios. 
Source: Statistics of Income. 

The classification of this ratio for total manufacturing by asset size 
for the years 1931-36 (see table 23) reveals a modest progression 
upward of the ratio not only for all companies and for income com- 
panies but also for no-income firms. The smallest size class con- 
sistently has a slightly higher ratio over the 6 years than the next larger 
class, $50,000 to $100,000 and in so.ine years the smallest class has a 
ratio higher than that for any of the three or four next larger classes. 
In no case, however, does this high ratio for the bottom class negate 
the upward progression over the entire range of size classes. In 
most cases the highest ratio is registered either by the largest or next 

2 In computing the ratio of dividends to net worth, the denominator was not adjusted to cover all reporting 
corporations (rather than those submitting balance sheets) . The universe is considered to consist of those 
corporations submitting balance sheets. The numerator (covering all reporting corporations) needs no 
adjustment because the proportion of dividends reported paid by corporations which did not flie balance 
sheets with their returns is negligible. Cf. appendix A. 



CONCENTEATION OF ECONOMIC POWER 



47 



to largest brackets, and the lowest by one of the three bottom brackets. 

The persistence of the upward progression of this ratio even when 
we consider only those corporations making a profit gives cause to 
wonder whether samples such as Epstein's and Paton's would not also 
show that stockholders in large corporations receive a higher cash 
return on their total equity (even though these same corporations are 
accused of having inflated surpluses) than do the smaller manufactur- 
ing companies. 

In support of our previous observation that the undistributed profits 
tax exercised an effect on dividend policy, we have the fact that the 
income companies in every size class but one — $10,000,000 to $50,000,- ' 
000 — had a higher ratio in 1936 than in any preceding year back 
through 1931; no-income companies had lower ratios in 1936 than in 
1935 in every size class, and only in 1933 was their average standing 
as low as the 1936 figure of 0.7 percent. The fact that the very large 
corporations showed a smaller relative increase in dividends than the 
small companies may also be evidence that the undistributed-profits 
tax bore less heavily on the big firms with large accumulated surpluses. 

Table 23. — Ratio of cash dividends paid to net worth for total manufacturing, 
classified by asset size, income, and no-income companies, 1931-36 



Asset classes 



Income companies: 

Oto $50,000 

$50,000 to $100,000 

$100,000 to $250,000 _- 

$250,000 to $500,000 

$600,000 to $1, 000,000... -_ 
$1,000,000 to $5,000,000-... 
$5,000,000 to $10,000,000... 
$10,000,000 to $50,000,000,. 

$50,000,000 and over 

All companies. . _ 

No-income companies: 

Oto $50,000 

$50,000 to $100.000 

$100,000 to $250,000 

$250,000 to $500,000. 

$500,000 to $1,000,000 

$1,000,000 to $5.000,000 

$5,000,000 to $10,000,000... 
$10,000,000 to $50,000,000.. 

$50,000,000 and over 

All companies 

All companies: 

Oto $50,000 

$50,000 to $100,000 

$100,000 to $250,000 

$250,000 to $500,000- 

$500,000 to $1,000,000 

$1,000,000 to $5,000,000 

$5,000,000 to $10,000,000... 
$10,000,000 to $50,000,000- 

$50,000,000 and over 

All companies 



1931 1932 1933 1934 1935 1936 1931-33' 1934-30' 1931-361 



4.2 
4.2 
4.9 
5.4 
6.2 
6.0 
8.0 
7.2 
8.9 
7.7 

1.8 
1.3 
1.3 
1.4 
1.5 
1.7 
1.9 
2.1 
3.9 
2.8 

2.8 
2.5 
2.8 
3.0 
3.3 
3.3 
4.3 
4.4 
6.0 
4.8 



6.2 
4.2 
4.3 
4.8 
6.2 
6.6 
6.8 
6.1 
6.8 
6.3 

.8 

.7 

.8 

.9 

1.0 

1.2 

1.1 

1.6 

2.1 

1.6 

1.6 
1.6 
1.6 
1.9 
2.2 
2.3 
2.8 
2.9 
3.6 
3.0 



3.0 
2.0 
2.5 
2.7 
3.2 
3.6 
4.5 
6.7 
4.6 
4.4 

.6 
.4 
.4 
.5 
.5 



.9 
.7 

1.4 
1.0 
1.4 
1.6 
1.9 
2.2 
2.7 
3.3 
2.9 
2.7 



5.9 
4.0 
3.7 
4.7 
5.9 
6.6 
6.1 
6.9 
6.1 
6.2 

.7 
.5 
.4 
.7 

1.6 
.9 

1.1 
.9 

1.6 

1.2 

3.1 
2.3 
2.2 
3.0 
4.2 
4.4 
4.3 
47 
4.1 
4.1 



4.2 
4.0 
4.7 
5.3 
6.3 
6.6 
7.8 
8.4 
6.6 
6.9 

1.2 
.4 
.6 
.7 
.8 
1.1 
1.0 
1.4 
7.2 
3.2 

2.7 
2.5 
3.1 
3.7 
4.5 
4.9 
6.0 
6.6 
6.7 
6.8 



7.4 
8.1 



,8.4 
8.1 
8.3 
8.1 
8.6 
8.4 

.7 
.3 
.6 

.7 
.6 
.7 
.7 
.7 
.8 
.7 

4.6 
6.6 
6.4 
7.0 
6.9 
7.0 
7.3 
7.4 
8.0 
7.6 



4.1 
3.6 
3.9 
4.3 
4.9 
6.1 
6.4 
6.3 
6.7 
6.1 

1.1 

.8 

.8 

.9 

1.0 

1.2 

1.3 

1.4 

2.3 

1.7 

l.fl 
1.7 
1.9 
2.2 
2.6 
2.6 
S.Z 
3.5 
4.2 
3.6 



6.8 
6.4 
6.7 
6.3 
6.9 
7.0 
7.4 
7.8 
7.1 
7.2 

.9 
.4 
.5 

.7 
1.0 
.9 
.9 
1.0 
3.2 
1.7 

3.6 
3.5 
3.9 
4.6 
6.2 
5.4 
5.9 
6.2 
6.3 
5.8 



6.0 
4.4 
4.8 
6.3 
6.0 
6.1 
6.9 
T.l 
6.0 
6.7 

1.0 
.0 

.7 
.8 
1.0 
1.0 
1.1 
1.2 
2.8 
1.7 

2.7 
2.6 
2.9 
3.4 
3.8 
4.0 
4.6 
4.9 
6.2 
4.7 



1 Averages of annual ratios. 
Source: Statistics of Income. 



LARGE MANUFACTURING CORPORATIONS 



The dividend record of all manufacturing corporations in aggregate 
terms has already been presented on the basis of Statistics of Income 
tabulations. The purpose of the present section is to present a more 
intensive analysis of the dividend experience of a sample of large 
manufacturing corporations. The Standard Statistics sample used 



48 CONCENTRATION OF ECONOMIC POWER 

for this purpose covers the period 1927-38 and permits an analysis 
not only of aggregate ratios, but also of the frequency distribution of 
particular ratios depicting the size of the dividend disbursements. 
These frequency counts are made possible by the fact that for the 
Standard Statistics sample we have the dividend records for each 
particular corporation, whereas, for the Statistics of Income tabula- 
tion, we have the dividend records only for all corporations combined,, 
classified by industry groups. The present plan is to outhne, first, 
the number of corporations paying common-stock dividends in cash 
in each of the years 1927-38, based on the Standard Statistics sample; 
second, the ratio of dividends paid to common stock and surplus, by 
years and by periods for all companies in the sample; third, the ratio 
of dividends to common stock and surplus by years and by periods 
for the corporations in the sample paying dividends; fourth, a fre- 
quency distribution of the size of the dividend rate of return in each 
year by corporations in the sample classified by industries; fifth, the 
stability of the dividend payments by these corporations; and finally, 
certain factors influencing dividend policies. Stability is here con- 
sidered not only in terms of the number of years but also the number 
of consecutive years during the period in which a particular corpora- 
tion paid dividends. 

The ratio of dividends to common stock and surplus, used in this 
analysis, gives a general picture of the return on total equity received 
by the common stockholders. It is not a rate of return on original 
invested equity, for two reasons. The denominator of this ratio 
includes surplus, some portion of which is composed of retained earn- 
ings and another portion of which may be composed of revaluations. 
In addition, the common stock included in this denominator may or 
may not correspond with the actual investment, depending on 
whether it is par or no-par and if the former, on whether par value 
has been changed. However, the figure used in this analysis does 
give an idea of the rate of return on the total equity as shown by the 
books of the company. 

The quantitative picivre. 

Table 24 shows the number of corporations in the Standard Sta- 
tistics sample paying dividends by- years. Of the total sample, three- 
fourths paid dividends during the years 1927-30. The proportion 
paying dividends during the years 1932-34 was somewhat less than 
one-half. In 1937 the proportion was up to three-fourths and in 
1938 down to something over one-half. 

It may seem somewhat surprising that, considering only these 
400 large and relatively successful corporations, the proportion pay- 
ing dividends in any one year is at no time larger than three-fourths. 
On the other hand, at least two-fifths of them are found to be paying 
dividends in the trough of depression. 



CONCENTRATION OF ECONOMIC POWER 



49 



Table 24.— r-Vumber of corporations paying dividends in each year from 1927 to 
1938 in the Standard Statistics composite of 400 corporations by industry 





Total 
num- 
ber of 
com- 
panies 


Number of corporations paying dividends 




1927 


1928 


1929 


1930 


1931 

267 


1932 
188 


1933 
153 


1934 
198 


1935 
228 


1936 
276 


1937 

302 


1938 




400 


294 


301 


315 


313 


■?AH 






Advertisiug, printing, and 


17 
13 
27 
10 
4 

22 
19 
7 
3 
10 
27 
16 

25 

5 
21 
24 

9 
3 25 

3 

10 
25 

7 
17 

8 
30 

3 
16 


•5 
11 
19 

4 

1 
21 
14 

2 

2 

6 
21 
13 

5 
21 

5 
18 
16 

8 
22 

2 
10 
17 

2 
11 

7 
17 

2 
12 


5 
11 
19 
5 
3 
19 
15 
3 
2 
7 
21 
13 

21 

5 
17 
16 

8 
21 

2 
10 
19 

3 
13 

6 
17 

2 
13 


5 
11 
22 
6 
3 

19 
16 
3 
3 
8 

22 

13 

5 

21 

5 

18 

16 

9 

23 

2 

9 

20 

3 

14 

16 
2 
14 


6 
11 
21 
4 
4 
19 
17 
2 
3 

22 
13 

6 
22 

5 
16 
16 

9 
22 

2 

9 
20 

5 
14 

5 
17 

2 
14 


5 

10 

17 
3 
3 

15 

15 
2 
3 
6 

22 
6 
6 

21 
4 

12 

12 
8 

19 
1 
9 

19 
4 

11 
4 

15 
1 

14 


3 
6 

10 
2 
3 

11 

13 
2 
2 
4 

21 
7 
5 

12 
4 
4 
6 
3 

14 
1 
5 

16 
3 
2 
4 

11 
1 

13 


3 

5 
8 
1 
1 
6 

12 
2 
2 
1 

19 
5 
4 
9 
4 
4 
5 
3 

12 
1 
5 

14 
3 
1 
5 
5 
1 

12 


2 
5 
10 

2 
2 

10 

15 
2 
3 
1 

20 
8 
4 
9 
4 
7 

11 
5 

16 
2 
5 

15 
4 
6 
5 

10 
1 

14 


3 
5 

17 
2 
2 

12 

16 
2 
3 
5 

22 
7 
5 
9 
4 
9 

12 

18 
2 
5 

17 
3 

6 
13 

1 
14 


4 
6 

22 
3 
3 

15 

17 
2 
3 
8 

23 

12 
5 

13 
4 

11 

16 
8 

21 
3 
7 

20 
5 
8 
6 

16 
1 

14 


4 
6 

21 
5 
3 

17 

16 
2 
3 
8 

24 

11 
5 

18 
5 

18 

17 
9 

24 
3 
7 

21 
4 

11 
6 

18 
1 

15 


4 




4 




!.■> 




4 




3 


Building and real estate 

Chemicals 


13 
14 


Coal' 


2 


Containers . 


3 


Electric equipment and radio.. 


6 
20 


Houseliold products 


7 




5 




16 


Medicines, drugs 


4 




12 


M iscellaneous securities 

ffice and business equipment . 
Oil producing and refining 


12 
9 

22 
3 


Kailroad equipment 


7 


Retail trade 2 


17 


Shipping and shipbuilding 

Steel and iron 


4 

7 


Sugar producing and refining.. 
Textiles 


6 
14 


Theaters' 


1 


Tobacco products 


14 







> 6 corporations— 1927 through 1933. 
Source: Standard Statistics Co. 



2 Nonmanufacturing corporations. ' 24 corporations 1936. 



Industrially speaking, the tire manufacturers, textiles, and the 
shipping and shipbuilding groups give a relatively poor account of 
themselves, as far as the number of corporations in each year paying 
dividends is concerned. Among the industrial groups rather fully 
represented by the dividend payers are advertising, trucks, building 
supplies, leather, office equipment, railroad equipment, sugar, and 
finally, the best represented of all, medicines. In no year does an 
industry fail of representation by at least one dividend payer. 

The aggregate ratios of dividends to common stock and surplus for 
all companies in the Standard Statistics sample, classified by periods, 
are presented in table 25. For all 400 companies the ratio of cash 
dividends on common to equity stood at 7.1 percent in the prosperity 
years 1927-29. . In the depression years, 1930-33, the corresponding 
ratio was 4.9 percent, and in the recovery years 1934-38, 5.6 percent. 
The over-all average for the entire period 1927-38 for all 400 com- 
panies stood at 5.7 percent; that is to say, considering all the common 
stockholders of all 400 companies in the Standard Statistics composite 
in the aggregate, they received over the entire period 1927-38, 
on the average, a return on their toital equity in these corporations of 5.7 
percent in cash dividends. This figure is remarkably close to the 5.2 
percent figure representing the dividend return, on net worth for all 
manufacturing corporations (supra, table 22). The two figures are 



50 



CONCENTRATION OF ECONOMIC POWER 



not strictly comparable in that the 5.2 percent relates to both pre- 
ferred- and common-stock dividends and to net worth while the 5.7 
percent covers only common-stock dividends and common stock plus 
surplus. However, if preferred-stock dividends for total manufactur- 
ing averaged over the period 5 or 6 percent, the record for the Statistics 
of Income universe would seem to be about as good as that for the 
sample of 400 large corporations. 

Table 25. — Average ratio of common dividends paid to common stock and surplus 
for Standard Statistics composite of 400 corporations by industry and by periods 
1927-29, 1930-S3, 1934-38, and 1927-38 





Number of 
companies 

7 
13 
27 
10 

4 

22 
19 

7 

3 
10 
27 
16 

7 
26 

6 
21 
24 

9 
26 

3 
10 
36 

7 
17 

8 
30 

3 
13 


Common dividends paid to 
common stock and surplus 




1927-29 


1930-33 


1934-38 


1927-38 


Advertising, printing, and publishing 


6.3 
10.2 
8.5 
3.1 
5.8 
6.5 
9.6 
3.0 
4.4 
6.4 
8.3 
16.4 
6.7 
6.2 
33.1 
8.4 
4.7 
9.3 
5.5 
2.9 
6.6 
6.2 
2.0 
4.0 
5.2 
4.1 
4.1 
8.7 


4.4 
4.8 
5.1 
1.3 
6.2 
3.1 
7.0 
1.8 
5.6 
3.4 
7.7 
6.0 
6.0 
4.1 
23.0 
2.2 
2.4 
6.0 
3.1 
2.2 
3.7 
4.7 
3.2 
2.0 
2.6 
2.0 
3.1 
8.0 


2.2 
3.8 
7.2 
1.1 
9.3 
3.0 
6.7 
1.2 
7.9 
4.9 
7.7 
5.5 
9.5 
5.2 

17.3 
3.9 
3.1 
8.3 
4.0 
5.6 
2.4 
5.2 
2.8 
2.8 
5.2 
2.7 
2.1 

10.0 


4.0 


Automobile trucks 


5.8 


Automobile parts . .. 


6.8 


Automobile tires , ' 


1.7 


Beverages... 


7.4 


Building tmd real estate 


3.9 


Chemicals, fertilizer 


7.5 


Coal' 


1.9 


Containers 


6.2 


Electric equipment and radios. 


4.8 


Food products.. 


7.8 


Household products 


8.4 


Leather, shoes 


7.6 


Machinery..^ 


5.1 


Medicines, drugs 


23.1 


Metals .: :.. , 


4.5 


Miscellaneous securities 


3.3 


Office and business equipment 


7.8 


Oil products and refining j ^. . 


4.1 


Paper and paper products _ 


3.8 


RallrQad equipment- .■ 


3.9 


Retail'tTidei....:.. ^.:. . . 


5.3 


Shipping and shipbuUdiog. . . .:.. 


2.7 


Steel and iron... ' 


2.8 


Sugar products and retolng 


4.3 


Textiles and apparel ^ ..i. ... . . .. 


2.8 


Theaters and pictures 1 " i 


3.0 


Tobacco products 


9.0 


, 




Mainly manufacturing 


365 
35 


7.1 
6.2 


4.9 
5.2 


5.6 
6.0 


6.7 


Nonmanufacturing 


5.8 






All companies . 


400 


7.1 


4.9 


5.6 


6.7 







' Nonmanufacturing corporations. 
Source: Standard Statistics Co. 



There are interesting industrial differences in this average rate of 
return not only over the entire period, but also as between the different 
phases of the period. The three industrial groups, excluding non- 
manufacturing, ranking highest and the three ranking lowest over the 
1927-38 period follow: 



Percent 

Medicines and drugs 23. 1 

Tobacco 9. 

Household products 8. 4 



Percent 

Steel and iron 2. 8 

Textiles 2. 8 

Shipping 2. 7 

Tires 1- 7 



In the prosperity years 1927-29, the corresponding groupings were: 



Percent 

Medicines 33. 1 

Household products 16. 4 

Trucks 10. 2 



Percent 

Tires 3. 1 

Paper products 2. 9 

Shipping 2. 



CONCENTRATION OF ECONOMIC POWER 



51 



In the depression years 1930-33, the rankmg was as follows: 

Percent 

Medicines.. 23. 

Tobacco 8. U 

Food products 7. 7 

In the recovery years 1934-38, the companies in the three highest 
and three lowest ranks were: 



Percent 

Textiles 2. 

Steel and iron 2. 

Tires 1. 3 



Percent 

Medicines 17. 3 

Tobacco 10. 

Leather 9. 5 



Percent 

Railroad equipment 2. 4 

Advertising 2. 2 

Tires 1.1 



The nonmanufacturing industrial groups have been excluded in 
arranging these brackets. Had they been included, coal would have 
fallen in the small percentage group in every period and theaters in the 
recovery period. 

Two different types of trends are primarily exhibited by the 28 in- 
dustries in the sample. Fourteen of them exhibit a downward trend 
from prosperity to depression and upward from depression to 
recovery. 

A declining trend over the entire period is shown by 11 industries. 
The beverages and container industries are unusual by reason of the 
fact that they exhibit an upward trend in the ratio of cash dividends 
paid to common stock and surplus over the period 1927-38. The re- 
maining industry, shipping and shipbuilding, records a trend that 
is higher in the depression period than in either the prosperity or 
recovery years. The trend exhibited by all 400 companies, as pointed 
out above, is from a high point in 1927-29 to a low point in 1930-33 
back to a point midway between the previous high and the current 
low in 1934-38. 

A break-down of the dividend return by years reveals not only in- 
teresting differences in the amplitude of fluctuation, but also serves 
to spotlight the crucial years as far as dividend experience is con- 
cerned. Starting out with a ratio of 6.8 percent in 1927 (see table 
26), the total sample of 400 companies increased the aggregate rate 
of dividend return on total stockholders' equity to 7.4 percent by 
1929. The percentage fell abruptly thereafter to a low point of 3.1 
percent in 1933. The subsequent rise carried the figure to 7.7 per- 
cent in 1937, but a decline to 4.8 percent occurred in 1938. The 
ratio, for all 400 companies, of common dividends paid in cash to 
common stock and surplus jumped from 4.4 percent in 1935 to 7.3 
percent in 1936, probably in part representing the effect of the un- 
distributed-profits tax. The fact that the ratio remained at a level 
of 7.7 percent in the succeeding year, which is above that attained 
in any previous year of the period, is also evidence of a strong factor 
influencing dividend disbursements. Not only did the entire sample 
of 400 companies make its best showing in the 1936-37 biennium, 
but also seven of the' mainly manufacturing groups and one of the 
nonmanufacturing groups made their best dividend records, speaking 
in aggregate terms, in this period. The sharp depression drop of the 
ratio for all companies occurred mainly in 1931 and 1932. The ratio 
fell from 6.9 percent to 5.8 percent from 1930 to 1931, and from 5.8 
percent to 3.8 percent from 1931 to 1932. 



259845 — 40— No, 15- 



52 



CONCENTRATION OF ECONOMIC POWER 



Table 26. — Average ratio of common dividends paid to common stock and surplus 
for Standard Statistics composite of 400 corporations by industry, 1927-38 





Num- 
ber of 
com- 
panies 


Common dividends paid to common stock and surplus 




1927' 


1928' 


19291 


1930' 


1931' 


1932' 


1933 


1934 


1936 


1936' 


1937 


1938 


Advertising, printing, 

and publishing 

Automobiles, trucks 

Automobile parts 

Automobile tires 


7 
13 
27 
10 

4 

22 
19 
7 
3 

10 
27 
16 

7 
26 

5 
21 

24 

9 

25 

3 
10 
26 

7 
17 

8 
30 

3 
16 


2 5.9 
9.9 
8.3 
2.0 
3.6 

7.2 
9.3 
2.4 
3.8 

5.7 
8.4 

11.6 
9.3 
6.1 

33.5 
7.5 

5.2 

7.3 

6.1 

2.4 

6.8 
6.9 

1.4 
3.0 

6.3 
4.6 
5.8 
8.7 


2 6.5 
10.4 
7.4 
2.1 
6.0 

6.1 
10.2 
3.4 
4.3 

6.3 

7.4 
20;6 

5.5 

6.0 
31.7 

7.6 

5.0 

8.3 

4.6 

3.6 
6.6 
6.3 

2.0 
4.3 

5.3 
3.8 
2.6 
8.2 


2 6.6 
10.4 
9.7 
5.1 
7.7 

6.1 
9.3 
3.3 
5.0 

7.2 
9.0 
17.1 
5.2 
6.6 
34.1 
10.2 

3.9 

12.2 

6.9 

2.6 
6.4 
6.6 

2.6 
4.7 

4.9 
3.9 
3.8 
9.2 


2 7.1 

9.2 
9.5 
2.6 
8.9 

5.7 
10.1 
2.5 
7.4 

7.1 
9.3 

13.3 
7.1 
7.0 

25.4 
6.8 

4.4 

11.1 

6.4 

2.8 
6.1 
6.2 

8.3 
6.0 

3.3 
3.4 

6.4 
9.1 


2 6.0 
5.1 
6.5 
2.0 
6.8 

3.9 
8.3 
2.2 
6.3 

5.1 

8.8 
3.4 
7.2 
5.1 
23.8 
2.1 

3.3 

6.5 

3.2 

1.6 
6.0 
6.9 

2.8 
2.5 

2.1 
2.5 
2.7 
7.6 


2 3.2 

3.1 

2.7 

.4 

6.1 

1.8 
5.2 
1.4 
4.3 

.9 
7.1 
4.6 
5.4 
2.3 
21.9 

.4 

1.2 

3.5 

2.2 

2.1 
2.0 
3.7 

1.0 
.3 

1.9 
1.2 
2.8 
7.3 


1.4 
1.9 
1.7 
.2 
3.0 

.9 
4.4 
1.1 
4.1 

.4 
5.6 
2.8 
4.1 
1.8 
20.7 

.6 

.7 

2.8 

1.7 

2.3 
1.7 
2.9 

.7 
.2 

3.0 

.8 

1.6 

8.0 


1.8 
2.0 
4.0 
.3 
4.6 

1.2 

6.7 
1.4 
5.6 

.6 
6.9 
3.4 
4.4 
2.5 
18.8 
2.0 

1.5 

4.3 

2.4 

5.4 
1.6 
3.6 

1.9 
1.3 

4.1 

1.4 

.5 

10.5 


2.0 
2.6 
6.6 
.3 

7.7 

1.9 

6.3 
1.2 
7.0 

2.3 
7.2 
3.7 
5.8 
3.7 
17.8 
2.4 

1.8 

6.3 

2.4 

3.9 
1.8 
4.1 

1.6 
2.3 

4.0 
1.8 
1.4 
8.3 


2.5 
7.6 

10.9 
.7 

12.6 

3.7 
7.8 
1.3 
9.1 

7.3 
8.6 
8.2 
7.2 
6.8 
17.8 
4.4 

5.1 

9.3 

<4.6 

6.5 
3.5 

7.8 

3.3 
3.4 

6.9 
4.0 
1.5 
10.5 


2.5 
5.5 
11.8 
2.8 
9.6 

5.7 
8.4 
1.1 
10.2 

9.0 
8.8 
7.7 
7.3 
7.5 
17.3 
7.6 

4.8 

14.3 

6.6 

7.6 
3.9 
6.0 

3.7 
4.7 

6.1 
4.2 
5.2 
10.6 


2.0 
1.4 
2.9 
1.5 
12.3 


Building and real es- 
tate 

Chemicals.. 


2.4 
5.2 


Coal' 


1.0 


Containers 


7.6 


Electrical equipment 
find rftdin 


5.5 


Food products 


6.9 


Household products 

Leather, shoes 

Machinery 


4.8 
22.7 
5.3 


Medicines, drugs 

Metals 


14.8 
3.1 


Miscellaneous securi- 
ties 


2.3 


OflBce and business 
equipment 


8.5 


Oil producing and re- 


4.0 


Paper and paper prod- 
ucts 


4.9 


Railroad equipment 

Retail trade' 

Shipping and ship- 
building . 


1.4 
4.6 

3.4 


Steel and iron 


2.1 


Sugar producing and 
refining . . . 


4.9 


Textiles and apparel. .. 
Theaters and pictures '. 
Tobacco products 


1.9 
2.1 
10.0 


Mainly manufactuiiuft: 
Nonmanufacturing 


365 
36 


6.8 
6.6 


7.1 
5.8 


7.5 
6.3 


7.0 
6.4 


5.8 
6.5 


3.7 
4.6 


3.1 
3.4 


3.9 
3.7 


4.4 

4.6 


7.2 
8.1 


7.7 
7.9 


4.7 
5.9 


All companies 


400 


6.8 


7.0 


7.4 


6.9 


5.8 


3.8 


3.1 


3.9 


4.4 


7.3 


7.7 


4.8 



' 399 corporations. 
2 6 corporations. 

Source: Standard 'Statistics Co. 



» Nonmanufacturing corporations. 
< 24 corporations. 



Some industrial groups reached drastic low points early in the de- 
pression. The steel and iron group and the tire manufacturers both 
recorded a percentage of 0.2 in 1933. On the other hand, certain 
industrial groups maintained a relatively high proportion throughout 
the entire period. Food got no lower than 5.6 percent in 1933; to- 
bacco, 7.3 percent in 1932; and containers, 4.1 percent in 1933. To- 
bacco's record is truly remarkable. This industry's dividend rate of 
return is not only on a high level, around 10 percent, but also is sur- 
prisingly stable over the entire period. On the other hand, although 
medicine's proportion of cash dividends paid to common stock and 
surplus is surprisingly high, it exhibits a distressing tendency to fall 
over the entire period covered by the Standard Statistics sample. 
Starting at 33.5 percent in 1927, it rises to 34.1 percent in 1929 and 
thereafter falls consistently to 14. S percent in 1938. The absence of 



CONCENTRATION OF ECONOMIC POWER 53 

a recovery period rise in the dividend record for this industry is 
singular. 

Industries characterized by a relatively wide range from high to 
low are, in order, medicines with a range of 19.3 percent; household 
products, 17.8 percent; office equipment, 11.5 percent; and auto 
parts, 10.1 percent. The manufacturing industries characterized by 
a small fluctuation, in absolute terms, are tobacco, the percentages 
for which over the entire period covered a range from high to low of 
3.3 percent; food, 3.7 percent; and textiles, 3.8 percent. Also in this 
group with small fluctuations are two mainly nonmanufacturing in- 
dustries — coal with a variation from high to low of 2.4 percent and 
retail stores with 4.9 percent. 

Thus far in the analysis of the dividend record of the Standard 
Statistics composite, we have been considering all corporations in- 
cluded in the sample, regardless of whether they paid dividends. 
The picture for the companies paying dividends is, however, weighted 
heavily by the companies not paying dividends. In order to ascer- 
tain the relative amount of the cash dividends paid by those com- 
panies disbursing dividends in a particular year, the following two 
tables are presented to correspond with the preceding ones covering 
all companies. 

Table 27 presents the rate of return for the dividend-paying com- 
panies in the sample of 400 companies, by industry and by periods, 
and reveals that this rate is higher for the sample of companies paying 
dividends than for the preceding sample of all 400 companies (includ- 
ing those not paying dividends). The break-down of these industries 
into three highest and the three lowest, however, corresponds remark- 
ably closely with that presented for the preceding tables covering all 
corporations. In the 1927-38 period, beverages replace tobacco in 
the group paying a large amount of dividends relative to net worth 
while, railroad equipment and oil intrude themselves into the low 
group, if the sample is limited to dividend payers. In the prosperity 
period chemicals and fertilizers replace truck manufactures in the high 
group and steel and iron producers replace tire manufacturers in the 
low group if one changes from an over-all picture of all 400 firms to 
the selected group of dividend-paying companies. Similarly, in the 
depression period, the food products industry replaces the leather 
industry in the high bracket while no change is undergone in the low 
percentage groups. In the recovery period beverages again displace 
tobacco in the high percentage group, while textiles and advertising . 
replace building supplies and railroad equipment in the bottom three 
industries. Finally, as far as the trends over the 1927-38 period are 
concerned, limiting the tabulation to the dividend-paying companies 
decreases from 11 firms to 10 the group with a declining trend and 
increases from 14 companies to 15 the group with a declining and then 
rising trend over the period. In the increasing trend group, paper 
replaces beverages, while in the group reaching a high point in the 
depression year, shipping and shipbuilding replaces theaters, if one 
limits oneself to the dividend-paying companies and compares the 
] experience with corresponding percentages for all companies in the 
sample of 400. 



54 



CONCENTRATION OF ECONOMIC POWER 



Table 27. — Average ratio of common dividends paid to common stock and surplus 
for dividend-paying companies in the Standard Statistics composite of 400 cor- 
porations by industry and by periods 1927-29, 1930-33, 1934-38 and 1927-38 



Advertising, printing, and publishing 

Automobile trucks - 

Automobile parts -- 

Automobile tires - 

Beverages - - 

Building and real estate 

Chemicals, fertilizer 

Coali 

Containers 

Eiectric equipment and radio 

Food products 

Household products - 

Leather, shoes .-- 

Machinery - 

Medicines, drugs -- 

Metals - --- 

Miscellaneous securities 

Office and business equipment 

Oil producing and refining 

Paper and paper products 

Railroad equipment 

Retail trade ' - -. 

Shipping and shipbuilding 

Steel and iron 

Sugar products and refining 

Textiles and apparel 

Theaters and pictures' '. 

Tobacco products 



Number 
of com- 
panies 



Common dividends paid to common 
stock and surplus 



7.6 
12.1 
11.4 
6.0 
10.8 
7.2 
12.2 
8.1 
5.8 
9.2 
10.4 
20.2 
9.4 
7.4 
33.1 
10.0 
7.0 
9.9 
6.2 
4.3 
6.8 
8.4 
5.4 
5.3 
6.2 
7.3 
6.1 
10.7 



6.0 
7.3 
8.9 
4.3 
9.5 
4.8 
9.1 
6.4 
6.6 
6.2 
9.8 

11.2 
7.8 
6.0 

27.1 
4.1 
5.3 
9.4 
4.5 
5.6 
4.9 
6.7 
5.1 
4.1 
4.6 
4.7 
7.4 
9.7 



1934-38 


1927-38 


4.7 


5.9 


10.6 


9.9 


11.0 


10.4 


2.9 


4.1 


14.1 


11.7 


4.6 


5.3 


8.1 


9.5 


4.2 


5.9 


7.9 


6.9 


8.0 


7.7 


9.5 


9.8 


9.5 


12,8 


13.6 


10.6 


9.8 


7.9 


20.8 


26.0 


6.9 


6.7 


5.2 


5.7 


9.6 


9.6 


4.7 


5.0 


6.6 


5.7 


3.9 


5.0 


7.1 


7.3 


4.8 


5.1 


5.8 


5.1 


7.1 


6.0 


5.4 


5.6 


6.4 


6.7 


11.3 


10.6 



' Nonmanufacturing corporations. Source: Standard Statistics Co. 

The ratio of cash dividends to common stock and surplus by years 
for dividend payers only (see table 28) also corresponds closely with 
the parallel table for all companies. From the experience based on 
the selected sample of dividend payers, certain rather abrupt changes 
in the dividend equity ratio for some industries may be observed. 
The ratio for beverages, for exam.ple, fell from 14.3 to 8.0 percent in 
1928. The dividend record of the medicine industry underwent a 
similarly drastic decline in 1930, falling from 34.1 to 25.4 percent. In 
the next year the shipping and shipbuilding industry fell more than 
a half from ll.G to 4.8 percent. In 1934 as compared with 1933, 15 
industrial groups increased the rate of dividend return on total stock- 
holders' equity. Moreover, 17 industries increased their dividend 
return some time during the depression years 1931-1933. Eleven of 
these 17 increased their dividends significantly: beverages from 
8.2 to 11.8 percent in 1933; electrical equipment from 2.2 to 3.9 
percent in 1933; household products from 9.0 to 10.5 percent in 1932; 
medicines from 25.4 to 29.8 percent in 1931; metals from 1.9 to 3.3 
percent in 1933; office equipment from 7.3 to 10.6 percent in 1932; 
steel and iron from 2.2 to 4.1 percent in 1933; sugar from 3.8 to 4.8 
percent in 1933; textiles from 3.2 to 4.5 percent in 1933; and finally, 
paper products which increased consistently from 3.9 to 8.2 percent 
over the period 1929-34 and tobacco which increased consistently 
from 8.6 to 12,0 percent over the period 1931-34. 



CONCENTRATION OF ECONOMIC POWER 



55 



Table 28. — Average ratio of common dividends paid to common stock and surplus 
for the dividend-paying companies in the Standard Statistics composite of 4OO 
corporations by industry, 1927-38 





Common dividends paid to common stock and surplus 




1927 


1928 


1929 


1930 


1931 


1932 


1933 


1934 


1936 


1936 


1937 


1938 


Advertising, printing, 


7.1 
11.7 
11.8 

5.1 
14.3 

7.5 
12.6 

8.6 

5; 8 

9.5 
10.8 
14.2 
13.1 

7.3 
33.5 

8.8 

7.8 

8.2 

6.9 
3.6 

6.8 

8.7 

4.9 
4.6 

- 6.0 
8.1 
8.7 
11.6 


7.8 
12.3 
10.5 
4.2 
8.0 
7.1 
12.9 
8.0 
6.5 

9.0 
9.5 

25.4 
7.7 
7.1 

31.7 
9.4 
7.6 

9.3 

5.4 
5.4 
6.6 
8.3 

4.6 
5.6 

7.1 
6.6 
3.9 
10.1 


8.0 
12.3 
11.9 

8.6 
10.2 

7.0 
11.0 

7.8 

5.0 

9.0 
11.0 
21.0 

7.3 

7.9 
34.1 
11.9 

5.8 

12.2 

6.4 
3.9 
7.1 
8.1 

6.6 

5.7 

5.6 
7.3 

5.7 
10.6 


7.1 
10.9 
12.2 
6.6 
8.9 
6.6 
11.3 
8.9 
7.4 

10.1 
11.4 
16.4 
8.3 
7.9 
25.4 
7.6 
6.6 

11.1 

6.1 
4.3 
6.8 
7.8 

11.6 
6.1 

5.3 
6.0 
8.2 
10.4 


7.2 
6.6 

10.4 
6.5 
9.0 
5.8 

10.5 
7.8 
6.3 

8.6 
10.9 
9.0 
8.5 
6.1 
29.8 
3.6 
6.7 

7.3 

4.2 
4.6 
5.5 
7.8 

4.8 
3.9 

4.3 
5.0 
8.1 
8.6 


6.3 
6.7 
7.2 
2.1 
8.2 
3.6 
7.6 
5.1 
6.5 

2.2 
9.1 

10.6 
7.2 
4.7 

27.1 
1.9 
4.8 

10.6 

4.0 
6.4 
3.9 
5.9 

2.4 
2.2 

3.8 
3.2 
8.4 
9.0 


3.3 
4.9 
5.6 
1.9 
11.8 
3.3 
7.0 
3.9 
6.2 

3.9 
7.9 
9.0 
7.2 
5.1 
25.9 
3.3 
3.2 

8.4 

3.6 
7.0 
3.4 

5.2 

1.5 
4.1 

4.8 
4,5 
4.7 
10.6 


6.4 
5.1 
10.8 
1.4 
9.2 
2.7 
7.2 
4.9 
5.6 

5.9 
9.4 

6.7 
7.8 
7.0 
23.5 
6.1 
3.1 

7.7 

3.8 
8.2 
3.3 
6.0 

3.4 
3.7 

6.6 

4.1 

1.6 

12.0 


4.6 

8.6 
10.4 
1.6 
15.3 
3.5 
7.5 
4.1 
7.0 

4.7 
8.8 
8.5 
8.1 
10.4 
22.2 
5.5 
3.6 

6.8 

3.4 
5.9 
3.6 
6.0 

3.7 
5.6 

6.3 
4.3 
4.2 
9.5 


4.4 
16.2 
13.3 
2.3 
16.6 
5.5 
8.7 
4.6 
9.1 

9.1 
10.0 
10.9 
10.0 
13.1 
22.3 
8.5 
7.7 

10.5 

5.1 
6.5 
5.0 
9.7 

4.7 
7.2 

9.2 
7.6 
4.5 
12.1 


4.5 
18.6 
15.2 

5.6 
12.8 

7.4 
10.0 

3.9 
10.2 

11.3 
9.9 
11.2 
10.2 
10.4 
17.3 
8.8 
6.8 

14.3 

6.9 
7.5 
5.6 
7.1 

6.5 
7.3 

8.1 
7.0 
15.7 
11.3 


3.5 


Auto trucks 


4.6 

5.2 


Auto tires 


3.8 
16.4 


Building and real estate. . 


4.1 
7.1 


Coali 

Containers -- 

Electrical equipment and 
radio 


3.5 
7.6 

9.2 
9.3 


Household products 


10.2 
31.7 


Machinery .. 


8.3 




18.6 


Metals -- 


5.4 


Miscellaneous securities. -. 
OfRce and business equip- 


4.6 
8.5 


Oil producing and refin- 


4.6 


Paperand products 

Railroad equipment 

Retail trade ' 


4.9 
2.0 
6.6 


Shipping and shipbuild- 
mg 

Steel and iron. 

Sugar products and refin- 
ing 

Textiles 


5.9 
6.1 

6.5 
4.0 


Theaters and pictures ' 

Tobacco and products 


6.3 
11.4 



« Nonmanufacturing corporations. Source: Standard Statistics Co. 

It was observed in discussing table 26 above, covering all companies 
that the rate of cash dividend return on total stockholders' equity 
for the medicine group fell consistently from 1929 to 1938. If, 
however, one limits oneself to the dividend-paying companies, the 
trend for the medicine group declines less consistently. A decline 
from 1929 to 1938 is still in evidence, but it is interrupted in 1931, 
again in 1936, and more decisively in 1938. 

Table 29, a type pecuhar to tabulations of corporate financial data 
which permit the computation of ratios for each company in the group 
is a frequency distribution of the companies in the Standard Statistics 
composite by the size of the ratio of cash dividends paid to common 
stock and surplus. Three groups of companies are distinguished; all 
400 companies in the Standard Statistics sample, the 365 companies 
which are mainly manufacturing, and the 35 companies which are 
nonmanufacturing. The percentage size classes across the top range 
from zero, meaning that a corporation in this group paid no common- 
stock dividends, to 25 percent and over, meaning that a corporation 
in this group paid cash dividends on common equal to 25 percent and 
over of the common stock and surplus. A final group labeled "deficit" 
includes a corporation which may or may not have paid dividends, but 
for which a ratio could not be computed because its deficit excluded 
the common stock. 



56 



CONCENTRATION OF ECONOMIC POWER 



Tablk 29. — Frequency distribution of the ratio of common dividends paid to common 
stock and surplus, Standard Statistics composite of 400 corporations, 1927-38 

ALL 400 COMPANIES 









Percentage 


size classes 








Years 


percent 


0.1 to 4.9 
percent 


5.0 to 9.9 
percent 


10.0 to 
14.9 per- 
cent 


15.0 to 
19.9 per- 
cent 


20.0 to 
24.9 per- 
cent 


25 per- 
cent and 
over 


Deflcit 


1927 


105 

98 

84 

86 

132 

211 

247 

2Q2 

172 

123 

98 

152 


78 
78 
76 
83 

114 
97 
79 
91 

110 
79 
82 

108 


132 

141 
134 
133 
86 
55 
46 
62 
67 
100 
115 
92 


41 
46 
60 
59 
44 
20 
16 
30 
30 
54 
56 
30 


21 
16 
22 

19 
13 
13 
9 
7 
17 
22 
23 
8 


9 

11 

13 

6 

3 

2 

1 

5 

1 

13 

16 

4 


13 
9 

10 

13 
7 
1 
2 
3 
3 
8 

10 
6 




1928 




1929 - 




1930 -. 




1931 

1932 




1933 





1934 





1935 -.. 





1936 


1 


1937 





1938 -'.- 










365 MAINLY MANUFACTURING 



35 NONMANUFACTURINQ 



1927. 


91 
87 
74 
75 
119 
195 
229 
185 
157 
109 
87 
137 


75 
71 
69 
78 

104 
85 
67 
81 
99 
75 
76 

102 


119 
129 
123 
121 
80 
51 
45 
58 
60 
87 
102 
80 


37 
43 
64 
53 
40 
18 
12 
26 
28 
50 
63 
29 


21 

15 

21 

19 

12 

12 

9 

7 

17 

22 

21 

7 


9 

11 

13 

5 

3 

2 

1 

5 

1 

11 

16 

4 


12 
8 

10 

13 
6 
1 
2 
3 
3 
8 

10 
6 




1928 




1929 




1930 




1931 




1932 




1933 - 

1934 






1935 





1936 


1 


1937 .- 





1938 






1927 


14 
11 
10 
11 
13 
16 
18 
17 
15 
12 
11 
15 


3 

7 
7 
5 
10 
12 
12 
10 
11 
4 
6 
6 


13 
12 
11 
12 
6 
4 
1 
4 
7 
13 
13 
12 


4 
3 
6 
6 
4 
2 
4 
4 
2 
4 
3 
1 



1 

1 


1 
1 





2 

1 






1 






2 




I 
1 



1 













1928 





1929... 





1930 . 





1931 





1932 





1933 





1934 

1S35 






19r»6 





1937 





1938 










Source: Standard Statistics Co. 

The skewness of the distribution set forth by table 29 is obvious. 
Eliminating the zero class and considering all companies, there is a 
steep rise from the 1 to 5 percent class, to the 5 to 10 percent class. 
Thereafter the decline is rapid to the 10 to 15 percent class and con- 
tinues on down, to the virtual vanishing point, in some years, for 
companies paying 25 percent and over in dividends. In 1927 through 
1930 the most popular percentage size class is the 5 to 10 percent. 
The category of no dividends is second in importance in these years, 
while the group of 10 to 15 percent is rising persistently over the period. 
In the years 1931 tlirougli 1936 the zero class leads in number of 
companies, while the 1 to 5 percent group is second. Over the years 
1934 to 1936, however, the 5 to 10 percent group gains persistently 
and by 1937 is ahead, the zero group falling to second place. In 1938 



CONCENTRATION OF ECONOMIC POWER 57 

the zero group again rises to the top, the 1 to 5 percent group falling 
to second place. 

It is rather surprising to observe that in certain of the years a 
sizable proportion of the companies, in some years more than 10 
percent, pay out dividends greater than a fifth of the total stock- 
holders' equity. Five years of such dividends would mean that the 
stockholder has gotten back his entire equity in the concern. 

The final table in this group is designed to give some insight into 
the stability of the dividend payments of these companies. Table 
30 is divided into two groups, the first of which gives the number of 
companies in each industry paying dividends 1, 2, 3, and so on up to 
12 years out of the period, and aIso the number of companies failing 
to pay dividends in any year of the period. The right half gives the 
number of companies in each industrial group paying dividends a 
specified number of consecutive years, the number of consecutive years 
ranging from up to 12. It is apparent that the number of corpora- 
tions which paid dividends 12 years out of the period will correspond 
exactly with the nurnber of corporations whi6h paid dividends in 12 
consecutive years; similarly, the zero classes in the two sides of table 
30 will correspond. 



58 



CONCENTRATION OF ECONOMIC POWER 



,_,.^C^^O»00>WC^'-'»0'^C^0C'^C»3'*CCCJi-<TrC5C^»-'CCMi-'O 



OOC^OOO«OOOC^O'HOOOOOOOOM<000 — OtH 



OOOO^OOOOO'-IOOOOOOOOO'-'OOO'-ICOO 



-<ooooo 



ooooooo^oooooooooooooo 



O'TfOOO'-IOOOOO'-lOOOOOOOOO'-'OOO-HOO 



i-'O^^OOOOOOOOOOOOOOOOOOOOOOOOt-* 



^wir^^O»0C^OOCCfC'HOWO'-<'-HOC^OOC^O^^»0O' 



C^lTf<eO'-tC<lTf*0'-«»-<^^^HO^OOO?C»0»O^HC*DM*-"000»OON 



,-n-(C^^O'^000*-*0^'-'C<lf-<-^»OO^^r-<COOWi-(^'-(0 



OOW^'-tOOOO»-*^^'-^^CCO»-'CO'-tOOO'-"C^'~<»-''^00 



oomc<ioo>0'HOOi'-H-Hoo«o»-'c<>0'HO'-"0'-i'-'0^oo 



OOC*3f-HO'-tOOOCpC<IOOOO'-tOOOOOO'-<00,0 00 



oc^oc^ooc^i-^j^O' 



HONcOO'-lOONOPa'HtO'-<'H 



f-f^co«-HO^':>C5C'ic^*-i»CTj<coXT»«c»3'^eoc^^'^OJC^^coco'-*o 



oo'^O'-iMcoooo'oO'-i'^O'-i'-iO'-iO'Hnio—ir-ccoO'-H 



^ocoooooooe-i'-HOOooN'-'i-i'-ioO'-icc^-^c^oo 



C^O»0000'~tCO^OWf-i«OC^»-tcCCOOOO'-''^0^0'-t 



OrtC<l—ii-cN(MO'-iOO"-'0'-iOC>3iOOC^OC^«OOOC^OC^ 



OeJ—lO"-HNNOOO>ONO'-lO'Hrt»-<NOOCOOM'-iNO'H 



i-lMO»-iOMOOOi—OC<IO>OON"-'"-l.-li-loOOMO"-lOO 



i-i—iNNi-Hooooo-^ooc^r-n-ii-iO'-i'-i^-^OMoe^oo 



i-irtOOO'-lOOO'-'Om— <NOIMMOOOC^'-i'H"0'J>-HO 



OOMOOroOOOOi-i'-HOOO'-l—coOOOO'-'O'H.-loO 



00'-lC«)OC<IO'-iO-H"-iOOMC—"e<>0'-00 0-Hr-<OC<500 



OOCO'HO'-iOOOOC^OOOOOOOOOOO'^OOOOO 



oe^ocaooN'^O' 



*OC^COO'-*OOCSOC^'-<«Oi-Hf 



S 0(3.2 
a t- 5 a 






'C H t- «> 

— 252 

.s c o c 

? £ S c 
?< c o c 
> t-J *- *- 
•C 3 3 S 



as 

ffl.S- 

a. 3J:r 



u> 






bo 



S3 '5 

.1= o a> 



II, 



a 
sill's- 

qT) 23 O ^ fc- 



i:i|ll:-|i:g||||S, 

>og5o = o3«ajo.22K_ O.-- «. 



ca L. o I 



r^ O 3 P o 

-b;x:2 3 »H£ 



n 

3 a 

3 tH 

§§ 

C3— . 



■O 3 

03 U 

■a ffl 



^5 



CONCENTRATION OF ECONOMIC POWER 59 

Considering, first, the left half of the table, on the number of years 
dividends were paid, we find that only 34 companies out of the entire 
400 failed to pay dividends in any year out of the period. On the 
other hand, 118 of the companies paid dividends in all 12 years and 
32 companies paid dividends in 11. The most popular range for the 
dividend payers was that from 4 to 9 years out of the period. In each 
of these categories 25 or more companies are to be found. Every 
company in the advertising group paid dividends in 4 years or more 
out of the period; in the beverages group, 5 years or more; in the con- 
tainers group, 8 years or more; in the railroad-equipment group, 4 or 
more; and in the tobacco group, with one exception, 7 or more years 
out of the period. In the medicine group 1 company paid dividends 
for 5 years and the remainder for all 12 years, while in the paper group, 
all companies paid dividends in 5 or more years out of the period. 

Turning now to the right-hand side of the table we find that, except 
for the extremes where 34 companies paid no dividends in any year 
and 118 companies paid dividends in every year of the period, the 
most popular stretch of consecutive years was 5, with 80 companies 
falling in this group. The stretch of 4 consecutive years was next 
high with 47 companies and that of 6 consecutive years was third 
high with 38 companies. If one excludes from consideration those 
companies paying dividends in all 12 years out of the period, relatively 
few companies paid dividends in more than 6 consecutive years. This 
seems due to the timing of the depression. If a company paid divi- 
dends in 1927 and continued through to 1932, it would have paid 
dividends 6 consecutive years. Most companies had difficulty in get- 
ting beyond the year 1932 with their dividend disbursements. Paying 
dividends out of surplus can be carried on only a certain number of 
years after profits fail, not indefinitely. Moreover, if a company 
should get into the black sufficiently by 1934 to start paymg dividends 
and continue paying through 1938, it would fall into the 5-consecutive- 
years group. The companies' which managed to get into the group 
paying dividends more than 6 consecutive years over the 1927-38 
period established an enviable record, if the average for these 400 
companies may be considered as normal. 
The controlling Javiors. 

Students of corporation finance have speculated at length on the 
factors which influence the decisions of corporate management con- 
cerning dividend pohcy. The layman generally feels that dividend 
policies of corporations are determined largely by profits and surplus, 
while scattered comments have been made in this report that the 
undistributed-profits tax may have influenced the amount of dividend 
disbursements. There is considerable evidence for the popular con- 
ception. Large corporations with a relatively stable income are 
famed for the^consistency of their dividends, while during the depres- 
sion it was emphasized that many corporations were apparently pay- 
ijig dividends out of surplus, not out of profits. 

General support for the popular belief concerning the influence of 
profits on dividends has been implied in tables already presented m 
this report. Table 23 showed that the ratio of cash dividends paid 
to net worth for all manufacturing corporations filing income-tax re- 
turns increased with asset size, while chart 3 illustrated that the ratio 



gQ CONCENTRATION OF ECONOMIC POWER 

of net profit to net worth also increased with asset size for the same 
corporations. Therefore we may infer that the more profitable firms 
pay more dividends than the less profitable companies. In a table 
to be presented in another chapter, showing the ratio of surplus to 
net worth for the same group of all manufacturing corporations, we 
find that the larger corporations have a higher ratio ; that is, they 
have a relatively large surplus. This testifies to the concomitance of 
large surplus with large dividends. 

Although few writers seem to have emphasized the point, another 
factor which gives every indication of exerting a significant influence 
on the decision of corporate managers to pay or not to pay dividends 
is the liquidity position. That is to say, a corporation cannot pay 
dividends in cash unless it has sufficient cash, or assets which can be 
readily converted into cash, to permit such a payment. One might 
therefore expect the payment of cash dividends on common stock to 
be influenced somewhat by the liquidity position of the corporation 
in question. The liquidity factor is one which could operate without 
specific or necessary reference to profits or the surplus position. That 
is to say, it is possible for a corporation to show a nice profit and to 
have a sizable surplus, but still be without adequate cash resources 
for the payment of dividends. In order to ascertain whether there 
seems to be any effect exercised by the liquidity position of a company 
upon its dividend policy, table 31 was constructed to show a cross- 
classification of the disbursement ratio with the liquidity ratio. The 
disbursement ratio gives the proportion of cash dividends paid on 
common stock to net income available for such dividends. Two 
separate categories are distinguished: Those with and those without 
net income available. The former are divided into three groups: 
Those paying no dividends, those paying up to half of their income in 
dividends, and those paying more than half. The next group is di- 
vided into those paying and those not paying dividends. The liquid- 
ity ratio, with which the disbursement ratio is cross-classified, has for 
its numerator cashTand-equivalent-plus-receivables, and for the de- 
nominator, current liabilities. Cash-and-equivalent-plus-receivables 
is construed to mean cash, marketable securities, and trade receivables. 
Three size classes of this ratio are depicted in the table — under 2, 
2 to 6, and 6 and over, sometimes referred to in this report as low, 
medium and high. Within each liquidity class we have the number 
of companies and the percentage that this number bears to the total 
number in that liquidity class. If the liquidity ratio has no eflFect 
upon dividend payments, and if random influences are eliminated by 
size of sample, one would expect these percentages, reading horizon- 
tally, to be similar. Consider, for instance, those companies with a 
net income but paying no dividends. If the liquidity position of a 
company exercises no effect upon its dividend policy we would expect 
to find the same percentage of the companies in this particular category 
in each of the liquidity classes. That is to say, we may consider the 
percentages in the total column under each year as "normal," or what 
one would expect if liquidity had no effect upon the disbursement ratio. 
By comparing the percentages for each liquidity class with the per- 
centage for all companies without respect to liquidity position, we are 
enabled to draw certain conclusions concerning the apparent effect of 
liquidity upon dividend policy. 



CONCENTRATION OF ECONOMIC POWER 



61 



Table 31. — Cross-classification of disbursement ^ and liquidity ^ ratios for Standard 
Statistics composite of 4OO identical companies, 1927-38 



Disbursement ratio • 



Liquidity ratio ' 



Under 2 


2to6 


6 and up 


To 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 



Companies with net income available 

Paying no dividends 

Paying 1 to 50 percent of income.. 
Paying 50 percent and over 

Companies without net income: 

Not paying dividends 

Paying dividends 

Total 



Companies with net income available 

Paying no dividends. 

Paying 1 to 50 percent of income.. 
Paying 50 percent and over 

Companies without net income: 

Not paying dividends 

Paying dividends 

Total. 



Companies with net income available: 

Paying no dividends 

Paying 1 to 50 percent of income... 
Paying 50 percent and over 

Companies without net income: 

Not paying dividends 

Pay ing dividends. 

Total - -. 



Companies with net income available: 

Paying no dividends. 

Paying 1 to 50 percent of income... 
Paying 50 percent and over.. 

Companies without net income: 

Not paying dividends 

Paying dividends 

Total 



Companies with net income available: 

Paying no dividends.. 

Paying 1 to 50 percent of income... 
Paying 50 percent and over 

Companies without net income: 

Not paying dividends 

Paying dividends 

Total. -. 



1927 



35 


30 


27 


13 


12 


16 


74 


18 


15 


51 


25 


7 


9 


76 


47 


40 


118 


57 


49 


64 


214 


17 


15 


9 


4 


6 


8 


32 








2 


1 


2 


3 


4 


117 


100 


207 


100 


76 


100 


400 



1928 



25 


24 


35 


17 


19 


23 


79 


?8 


26 


74 


35 


14 


17 


116 


39 


37 


96 


45 


44 


54 


179 


13 


12 


3 


1 


4 


5 


20 


1 


1 


4 


2 


1 


1 


6 


106 


100 


212 


100 


82 


100 


400 



1929 



1930 



15 
23 
125 

24 

18 



205 



100 



110 



100 



32 
240 



400 



1931 



100 



4 
101 



138 



100 



19 
14 
190 

112 
65 



1 Ratio of dividends paid on common stock to net income available for such dividends. 
» Ratio of cash and equivalent plus receivables to current liabilities. 
' Less than one-half of 1 percent. 



Per- 
cent 



100 



100 



19 


16 


22 


11 


17 


22 


58 


37 


31 


67 


33 


10 


13 


114 


47 


40 


106 


52 


44 


57 


197 


12 


10 


8 


4 


6 


8 


26 


4 


3 


1 


w 








5 


119 


100 


204 


100 


77 


100 


400 



100 



100 



100 



62 



CONCENTRATION OF ECONOMIC POWER 



Table 31. — Cross-classification of disbursement and liquidity ratios for Standard 
Statistics composite of 400 identical companies, 1927-38 — Continued 



Disbursement ratio 



Liquidity ratio 



Under 2 



Num- 
ber 



Per- 
cent 



2 to 6 



Num- 
ber 



Per- 
cent 



6 and up 



Num- 
ber 



Per- 
cent 



Total 



Num- 
ber 



Per- 
cent 



Companies with net income available 

Paying no dividends --. 

Paying 1 to 50 percent of income.. 

Paying 50 percent and over 

Companies without net income: 

Not paying dividends 

Paying dividends 

Total 



Companies with net income available: 

Paying no dividends _ 

Paying 1 to 50 percent of income.. 

Paying 50 percent and over 

Companies without net income: 

Not paying dividends 

Paying dividends 

Total 



Companies with net income available 

Paying no dividends 

Paying 1 to 50 percent of income.. 

Paying 50 percent and over 

Companies without net income: 

Not paying dividends 

Paying dividends 

Total 



Companies with net income available: 

Paying no dividends. 

Paying 1 to 50 percent of income.. 

Paying 50 percent and over 

Companies without net income: 

Not paying dividends 

Paying dividends 

Total 



Companies with net income available 

Paying no dividends 

Paying 1 to 50 percent of income.. 
Paying 50 percent and over.. 

Companies without net income: 

Not paying dividends 

Paying dividends 

Total 



1932 



5 


7 


11 


7 


5 


3 


21 


5 


3 


4 


5 


3 


1 


1 


9 


2 


13 


18 


57 


36 


55 


33 


125 


31 


52 


70 


67 


42 


70 


42 


189 


48 


1 


1 


20 


12 


35 


21 


56 


14 


74 


100 


160 


100 


166 


100 


400 


100 



1933 



22 


23 


40 


23 


20 


16 


82 


8 


8 


23 


13 


7 


5 


38 


11 


11 


42 


25 


47 


36 


100 


55 


56 


66 


38 


42 


32 


163 


2 


2 


1 


1 


14 


11 


17 


98 


100 


172 


100 


130 


100 


400 



1934 



23 


23 


34 


18 


16 


15 


73 


7 


7 


28 


15 


6 


5 


41 


18 


18 


78 


41 


51 


47 


147 


51 


50 


47 


25 


31 


28 


129 


2 


2 


3 


1 


6 


fi 


10 


101 


100 


190 


100 


109 


100 


400 



1935 



35 


29 


41 


22 


13 


12 


89 


27 


22 


31 


16 


4 


3 


62 


20 


16 


85 


45 


53 


47 


158 


37 


30 


30 


16 


17 


15 


84 


3 


3 


1 


1 


3 


3 


7 


122 


100 


188 


100 


90 


100 


400 



1936 



36 


23 


29 


15 


6 


12 


71 


25 


16 


22 


11 


3 


6 


50 


70 


45 


123 


63 


37 


72 


230 


24 


16 


19 


1 


5 


10 


48 








1 


(') 








1 


155 


00 


194 


100 


51 


100 


400 



25 



100 



100 



0) 



100 



• Less than one-half of 1 percent. 



CONCENTRATION OF ECONOMIC POWER 



63 



Table 31. — Cross-classification of disbursement and liquidity ratios for Standard 
Statistics composite of 4OO identical companies, 1927-38 — Continued 



Disbursement ratio 



Companies with net income available: 

Paying no dividends 

Paying 1 to 50 percent of income.. 

Paying 50 percent and over , 

Companies without net income: 

Not paying dividends 

Paying dividends. 

Total 

Companies with net income available: 

Paying no dividends 

Paying 1 to 50 percent of income... 
Paying 50 percent and over 

Companies without net income: 

Not paying dividends 

Paying dividends , 

Total 



Liquidity ratio 



Under 2 


2 to 6 


6 and up 


Total 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


1937 



31 


18 


16 


9 


7 


14 


54 


28 


17 


20 


11 








48 


74 


44 


134 


73 


40 


82 


248 


31 


19 


11 


6 


2 


4 


44 


4 


2 


2 


1 








6 


168 


100 


183 


100 


49 


100 


400 



100 



1938 



19 


16 


14 


7 


6 


8 


39 


10 


9 


12 


6 


2 


3 


24 


34 


29 


120 


69 


61 


65 


205 


50 


42 


49 


24 


14 


18 


113 


6 


4 


9 


4 


6 


6 


19 


118 


100 


204 


100 


78 


100 


400 



100 



Source: Standard Statistics. Tabulated at Income Tax Study, Philadelphia. 

Let US look more closely at the pictures presented by this table for 
each of the years 1927, 1932, 1936, and 1938. The first and second 
years represent prosperity and depression, respectively. The third is 
the year of the undistributed-profits tax, and the fourth is the latest 
year available. 

In 1927 the income companies not paying dividends and having a 
liquidity ratio of under 2, that is, a relatively low liquidity ratio, con- 
stituted 30 percent of the corporations in this liquidity size class. 
The percentage without regard to liquidity, however, was 19 percent 
and in each of the other two liquidity classes, that is, those with a ratio 
of 2 to 6 and those with a ratio of 6 and over, were 13 percent and 16 
percent, respectively, both of them being under the 19 percent over-all 
figure. That is to say, if a company had a net income available for 
common-stock dividends and still paid no dividends, the liquidity 
ratio would seem to be at least a partial explanation of the reason why 
no dividends were paid. Consider, now, the income companies pay- 
ing out a relatively large proportion of their income in the form of 
dividends ; that is, those paying out a half or more of their income avail- 
able. Fifty-three percent of all corporations, and only 40 percent of 
those with a low liquidity ratio, were in this category, while those with 
a medium and high liquidity ratio, respectively, had percentages of 
57 and 64. That is to say, the corporations paying out in dividends 
a relatively large amount of their income were characterized by a 
relatively high liquidity ratio. The income companies paying divi- 
dends, but paying a relatively small proportion, that is, one to 50 per- 
cent of their income in that form, are in a mixed group. If one ignores 
the liquidity ratio, 19 percent of the companies fall in this category. 



g4 CONCENTRATION OF ECONOMIC POWER 

Less than this percentage are in the low Hquidity ratio class, more than 
this percentage are in the 2 to 6 liquidity ratio class, and less are in the 
6 and over class. Even this mixed result, however, is some evidence 
of the influences of liquidity on the payment of dividends. Now let 
us consider the companies without a net income available for common 
stock dividends in 1927. Ignoring the liquidity position, 8 percent and 
1 percent are the relative proportions of those not paying and those 
paying dividends. If one takes into account liquidity position, however, 
the proportion of those with a small liquidity ratio not paying and pay- 
ing dividends are 15 percent and percent, respectively. That is to 
say, no corporations without a net income available for dividends paid 
dividends unless their liquidity ratio was at least as high as 2 to 1. In 
the liquidity ratio class of 2 to 6, 1 percent of the corporations with- 
out a net income paid dividends and in the liquidity class of 6 and over, 
3 percent of the corporations without ajiet income available paid 
dividends. This is what a thesis that liquidity influences dividend 
payments would lead one to expect. 

A similar picture can be observed for 1932. The percentages for 
the companies not paying dividends in the under-2 liquidity class are 
larger than the percentages for the same group of companies in the 
total column. Similarly, considering the companies paying a large 
amount of dividends, the percentage in the under-2 liquidity class is 
smaller than in the total column. This jibes with our thesis. The 
companies with a net income available paying 50 percent and over 
in the form of dividends in 1932 constitute 31 percent of all com- 
panies. Only 18 percent of the firms in the low liquidity group as 
contrasted with 36 and 33 percent, respectively, in the medium and 
high liquidity groups, fall in this category. Similarly, it can be ob- 
served that dividend-paying companies without a net income are 
rarely in the low liquidity group, whereas, those without a net income 
and not paying dividends are relatively concentrated in the low 
liquidity group. That is to say, the depression does not seem to have 
mitigated the effect which liquidity position apparently exercises on 
dividend policy. 

In 1936 the liquidity position, even in the face of the undistributed 
profits tax, still seerhed to exert its influence on dividend payments. 
The companies with a net income paying no dividends constituted 18 
percent of the total number of all companies. Introducing the liquid- 
ity break-down reveals that 23 percent of those with a poor liquidity 
ratio, and 15 and 12 percent, respectively, of those in the medium and 
high liquidity ratio groups had a net income but paid no dividends. 
The income companies paying a relatively large amount of dividends 
were also concentrated, relatively, in the high liquidity classes. 

The latest year for which the necessary figures are available, 1938, 
still finds the liquidity ratio exercising its apparent influence upon 
the dividend policy of corporations. The picture in this year is similar 
to that for the preceding years. The corporations paying dividends in 
sizeable amounts are relatively concentrated in the high liquidity 
classes and those not paying them are dominated by the low liquidity 
firms. 

The evidence seems to show that liquidity exercises some influence 
on dividend policy. It can also be shown, although perhaps less con- 
clusively, that the current ratio exercises a similar influence on divi- 
dends. A cross-classification corresponding to that contained in table 



CONCENTRATION OF ECONOMIC POWER 55 

31 has also been constructed ^ using the current ratio — i. e., the ratio 
of current assets to current liabilities — and a remarkably similar pic- 
ture is found. Companies without a net income available and not 
paying dividends are relatively concentrated in the low current ratio 
group while such companies paying dividends are generally those with 
a high current ratio. There is some evidence, however, that the in- 
fluence of the current ratio on dividend policy is slightly less marked 
than that of the liquidity ratio. 

« But not included in this report, for lack of space. 



CHAPTER IV 

WORKING CAPITAL ' OF AMERICAN MANUFACTURING 
CORPORATIONS 

Thus far we have been concerned with the end results of the opera- 
tion of American manufacturing corporations, with their net profits 
and dividend disbursements. Such figures catch the popular fancy; 
some of their more obvious characteristics are w^ell known to the 
average reader, and much of the current polemical literature on social 
conditions is concerned, explicitly or implicitly, with them. 

There is another body of corporate financial data which is less well 
known to the lay reader than the profits data, but which is neverthe- 
less of crucial importance in the financial analysis of business ente^ - 
prises. Reference is had to the figures on working ^ and fixed capital, 
some of which wUl be presented in this and the following chapter. 
The value of such financial data has become recognized relatively 
recently by business-cycle analysts. They have long been followed 
closely by bankers and credit men, while managers of business enter- 
prises have always been accustomed to use them as guides in the formu- 
lation of their poHcies. 

Because the working capital and fixed-capital ratios are of more 
technical than general interest, they will not be discussed here in as 
much detail as that accorded the profits figures. The aim is to give 
the reader a broad picture of the working- and fixed-capital positions 
of all manufacturing corporations in the aggregate and then of samples 
of large and small manufacturing corporations in particular. 

QUANTITATIVE MEASURES 

With respect to working capital, attention will first be focused on 
quantitative measures of its magnitude, and then on qualitative 
measures of its utilization. The present distinction between quanti- 
tative and qualitative measures, although clearly cut, is not that 
between measurable and nonmeasurable. In the present instance both 
are naturally quantitative. But the former refers to ratios using only 
balance-sheet items, while the latter refers to the turn-over ratios 
using the sales item. The former shows the magnitude of the working 
capital, the latter the rapidity of its utilization. 

It is important to remember that these worldng-capital ratios for 
manufacturing corporations are not adapted to refined analysis. 
Aside from the fact that the number of firms represented varies from 
year to year,^ the dollar figures themselves are as of the end of a 
12-month period rather than averages over 12 months. This last 

' Working capital is here construed in its broad sense and refers to all tbe items of current assets and cur- 
rent liabilities. The narrow definition of working capital — denoting the difference between current assets 
and current liabilities— is here called net working capital. 

' Except in the material presented on the sample of large manufacturing corporations. 

%7 

259845 — 40— No. 15 6 



g§ CONCENTRATION OF ECONOMIC POWER 

factor vitiated somewhat the profit ratios, as pointed out above, be- 
cause the capital taken as the denominator was not all available during 
the year covered by the income figure in the numerator. Since ele- 
ments of working capital are usually subject to more fluctuation, 
especially within a year, than the fixed capital, this factor is of even 
more importance in this and the succeeding chapters. All one can say 
about working-capital ratios computed from annual figures is that 
they show the position at a point of time, each point of time being 
separated by 12 months. Nothing definite or evien probable can be 
inferred about the position between these points of time; the end-of- 
year standing may represent window dressing, or an unfavorable posi- 
tion resulting from purely temporary factors. Working-capital 
figures which were an average of the actual level at the end of each 
month during the year, or which were analyzed on a monthly basis, 
would be much better suited to refined analysis. 

All Manujacturing Corporations. 

Probably the best known of the working-capital indexes is the 
current ratio. Being the number of times current assets equal current 
Uabilities,^ it gives a good picture of the short-run solvency of an 
enterprise. Its theoretical significance stems from the fact that 
current assets are subject to shrinkage while current liabiHties are not, 
and for a firm's financial position to be safe current assets should 
exceed current liabilities enough so that the potential shrinkage of the 
former would not imperil the company's ability to meet the latter and 
hence remain solvent. One should not, however, attach much sig- 
nificance to the absolute level of working-capital ratios; their trend is 
more revealing, by reason of the fact that different conditions deter- 
mine what is a satisfactory ratio for each particular company. In 
addition to the variation among satisfactory ratios within an industry, 
there are also marked differences among industries. W. C Schluter * 
has effectively singled out some of the "factors that make for a 
wide difference in the requirements and management of working 
capital as between any two industries or individual enterprises" as 
follows: 

1. Nature of goods dealt in — type of industry. 

2. Location of firm in relation to the markets in which it buys 
and sells. 

3. Financial connections. 

4. Integration and agreements with other enterprises. 

5. Relative stability or instability of demand. 

6. Manufacturing period. 

7. Terms of sale and purchase. 

8. Potential and actual competition. 

The current ratios over the 1926-36 period for all manufacturing 
corporations reported in Statistics of Income and for all the corpora- 
tions in the five selected subgroups are given in table 32. In addition 
to the annual ratios, this table also contains averages of the annual 
figures for the prosperity period 1926-29, the depression period 
1930-33, the recovery years 1934-36, and the entire period 1926-36. 
These figures emphasize the high current ratio maintained by these 

• More strictly: The number of times current'liabilities divide into current assets. Since this is usually 
greater than I, the ratio is not converted to percentages. For Statistics of Income current liabilities do 
not include accrued expenses; for the other sources they do. 

* Credit Analysis, p. 242. This is a standard work which has proved helpful in much of the present 
analysis. 



CONCENTRATION OF ECONOMIC POWER 



69 



manufacturing corporations in bad years as well as good ones. In no 
year do current assets fail to cover twice the current liabilities for 
all manufacturing corporations and for each of the industrial sub- 
groups. In only one industry, lumber, is the coverage consistently 
and significantly below 3 to 1. This is surprising when one considers 
that "no income" as well as "income" companies, Uquidating as well 
as expanding firms, failures as well as successes, are all grouped 
together in the figures which make up these ratios. These figures 
undoubtedly conceal considerable dispersion among the current ratios 
for particular firms making up these aggregates, but that they could 
come out on an average basis as high as they do is striking. 

The trend of these ratios indicates that these companies in the 
aggregate had failed by 1936 to restore their current position of 1933, 
not to mention that of 1929 and 1930. This was true for total manu- 
facturing and for each of the subgroups except textiles and lumber. 
The undistributed-profits tax may have resulted in some weakening 
of the cash position in 1936. But the fact that for the total and for 
every industry except stone-clay, the 1935 ratio is less tharj, that for 
1936 lends support to the argument that other factors were probably 
more important. The major weakening of the current position did 
not occur until after 1933, except in the case of lumber, when the drop 
occurred in 1932, and in the case of textiles, which exhibited a sur- 
prising stability over the entire period. 

Table 32. — Current ratio for total manufacturing and -5 subgroups, 1926-^6 



Year 



Total man- 
ufacturing 


Foods 


Textiles 


Lumber 


Stone-clay 


3.38 


2.89 


2.96 


2.20 


3.37 


3.31 


2.82 


3.03 


2.14 


3.39 


3.41 


3.09 


2.91 


2.24 


3.45 


3.51 


2.94 


2.94 


2.43 


3.42 


3.48 


3.19 


2.96 


2.34 


3.23 


3.37 


3.20 


3.01 


2.37 


3.09 


3.12 


3.39 


3.07 


2.03 


2.96 


3.13 


3.26 


3.13 


2.06 


3.48 


2.78 


3.00 


3.08 


2.00 


2.78 


2,89 


3.01 


3.02 


2.21 


3.10 


2.95 


3.21 


3.03 


2.39 


3.07 


3.40 


2.94 


2.96 


2.25 


3.41 


3.28 


3.26 


3.04 


2.20 


3.19 


2.87 


3.07 


3.04 


2.20 


2.98 


3.21 


3.09 


3.01 


2.22 


3.21 



Metals 



1926 

1927 

1928 

1929 

1930 

1931 

1932 

1933 

1934 

1935 

Ifl36 

1926-29' 
1930-33 J 
1934-36 1 
1926-36 » 



4.20 
4.18 
4.56 
4.86 
5.05 
4.12 
4.08 
4.71 
3.34 
3.17 
3.55 
4.45 
4.49 
3.35 
4.17 



1 Avera<res of annual ratios. 

Source: Statistics of Income. Current llabOities do not include accrued expenses. 

This maintenance of the current ratio through 1933 probably indi- 
cates an unwillingness on the part of the entrepreneurs to incur risks 
necessitating an increase in current debt, since this item fell commen- 
surately with current assets. In other words, their expectations in 
declining years 1930-32 must, have been such that they refused to 
undertake operations which would have entailed further borrowing 
either through notes or accounts payable. The effect of this factor 
was supplemented by relatively stable cash holdings;^ the flow from 
inventory through receivables stopped with the liquidation of the 
latter into cash. The failure of the current ratio to respond more 
heartOy to the 1934-36 recovery movement seems attributable largely 
to the willingness of businessmen again to incur the risks incident to 

'The cash holdings of all manufacturing corporations submitting balance sheets with their income-tax 
returns were (in billions of dollars) 3.8 in 1929, 3.5 in 1931, and 3.3 in 1932. By 1936 they were 3.5. 



70 



CONCENTRATION OF ECONOMIC P(^WER 



short-term borrowing. The rise m current assets over the 1934-36 
period was matched by an increase in current Habilities. 

The highest current ratio, of more than 4 to 1 over the 11-year 
period, was registered by the metals group; the poorest, of shghtly 
more than 2 to 1, by lumber. Total manufacturing and the other 
industrial subgroups clustered about the 3-to-l level. Without 
attributing undue importance to these inter-industry differences, it is 
perhaps safe to say that the relatively low ratio' of the lumber group is 
not wholly dissociated from its poor earnings position which was 
described in chapter 2. 

The current ratios for aU manufacturing corporations combined, 
classified into nine asset size classes, are presented in table 33 for each 
ot the years 1931-36 and for the periods 1931-33, 1934-36, and 
1931-36. The differences between the size classes seem large and 
consistent enough to be significant: the larger firms have a higher 
ratio, almost 4 to 1, than the smaller, about 1.4 to 1. The biggest 
ratio, however, is not always found in the largest size class: in 4 years 
out of the 6-year period the highest ratio was shown for either the 
$5,000,000 to $10,000,000 or $10,000,000 to $50,000,000 classes. In 
every year, the smallest size class had the lowest ratio, and in general 
the upward progression of the current ratio with asset size is persistent 
and regular. Concomitant with their higher ratio, the larger com- 
panies also underwent a relative weakening of their current position 
after 1931. Current assets declined while current liabilities remained 
constant. The ratio of the smallest size group remained remarkably 
stable (even though distressingly low) throughout the period, whUe 
the ratios for the ne:^t three size groups ranging up to the $500,000 
level actually rose slightly over the entire period, current assets 
proving more stable than current liabilities. That is to say, so far 
as the absolute level of the current ratio is concerned, the larger 
firms seem to be in the better position; but so far as the incidence of 
the depression is concerned, the smaller ones seem to have fared the 
better.^ Even considering the greater decline in the current ratio of 
the big corporations, their position was still better — if one may label 
a higher ratio as "better" — than that of the smaller companies. The 
best showing of all, however, seems to have been recorded by the 
medium-sized corporations. Their current ratio was not only high 
enough to be satisfactory, but also strong enough to withstand the 
ravages of business depression. 

Table 33. — Current ratio for total manufocturing, classified by asset size, 1931-36 



Asset classes 


1931 


1932 


1933 


1934 


1935 


1936 


1931-331 


1934-36' 


1931-361 


$0 to $50,000 


1.43 
1.73 
2.02 
2.23 
2.68 
3.27 
4.04 
4.00 
4.22 


1.36 
1.73 
1.95 
2.35 
2.69 
3.27 
3.95 
3.83 
3.54 


1.41 
1.76 
2.06 
2.41 
2.69 
3.44 
3.87 
3.70 
3.48 


1.39 
1.84 
2.05 
2.30 
2.50 
2.80 
3.06 
3.10 
3.15 


1.42 
1.84 
2.10 
2.40 
2.53 
2.97 
3.24 
3.32 
3.23 


1.44 
1.82 
2.08 
2.40 
2.54 
3.15 
3.59 
3.66 
3.11 


1.40 
1.74 
2.01 
2.33 
2. 68 
3.33 
3.95 
3.84 
3.75 


1.42 
1.83 
2.08 
2.37 
2.52 
2.98 
3.30 
3.36 
3.16 


1.41 


$50,000 to $100,000 


1.79 


$100,000 to $250,000 


2.04 


$250,000 to $500,000 


2.35 


$500,000 to $1 ,000,000 

$1,000,000 to $5.000.000 

$5,000,000 to $10,000.000 

$10,000,000 to $50,000,000..... 
$50,000,000 and over 


2.60 
3.15 
3.62 
3.60 
3.46 







• Avenipes of annual ratios. 

Source: Statistics of Income. Current liabilities do not Include accrued expenses. 



• This may be due to the fact that small firms whose current ratios fell in these years went out of business. 
The ratios of the firms in this group are already so low, on an aggregate basis, that they virtually constitute 
a bottom level below which they could not go without involving insolvency. In addition, largei firms with 
their higher current ratios may have moved down, during' the depression, into the small asset size class. 



CONCENTRATION OF ECONOMIC POWER 



71 



The current ratio is one of the best indicators of the working 
capital position of business eilterprises. The picture it portrays, 
however, is not complete, and other ratios are needed to round it out. 
One of these is the net working capital to net capital assets ratio, of 
which industry figures are presented in table 34 and a size break-down 
of total manufacturing in table 35. Other such ratios are the various 
turn-over indicators which will be presented next in order. 

Net working capital is the difference between current assets and 
current liabilities, and indicates the amount of current items which 
would be remaining if all the current debt were paid off. The ratio of 
net working capital to fixed assets compares the amount of net working 
capital with amount of investment in plant; that is, it sets forth the 
uses to which the corporations are putting their capital. Changes in 
this ratio indicate not only greater or less reliance on short-term 
credit — either bank or mercantile — to provide working capital for 
production operations, but also changes in control over working 
capital needed to keep the plant going. 

Table 34. — Ratio of net working capital to capital assets for total manufacturing 

and 6 subgroups, 1926-36 



Year 


Total 
manufac- 
turing 


Foods 


Textiles 


Lumber 


Stone-clay 


Metals 


1926 . 


Percent 
64.5 
65.4 
66.5 
65.9 
58.6 
50.4 
45.6 
50.1 
58.9 
62.9 
66.8 
65.6 
51.2 
62.9 
59.6 


Percent 
62.2 
63.3 
71.0 
66.0 
67.2 
63.0 
60.8 
64.8 
74.5 
78.0 
86.4 
65.6 
64.0 
79.6 
68.8 


Percent 
93.2 
93.4 
90.4 
91.5 
74.4 
61.2 
54.9 
69.1 
72.2 
78.2 
96.1 
92.1 
64.9 
82.2 
79.5 


Percent 
44.8 
42.9 
44.8 
49.6 
42.6 
34.4 
25.9 
27.8 
28.6 
35.3 
41.3 
45. 5 
32.7 
35.1 
38.0 


Percent 
40.7 
39.5 
38.0 
37.0 
33.5 
29.8 
25.8 
30.1 
30.3 
37.7 
39.5 
38.8 
29.8 
35.8 
34.7 


Percent 
70.5 


1927 


72.2 


1928 - 


76.3 


1929 


76.6 


1930 .. .. 


68.1 


1931 - 


55.9 


1932 


48.1 


1933 


53.5 


1934.... 


65.5 


1935 -. 


66.6 
76.4 


1936 


1926-291 


73.9 


1930-33 ' 


56.4 


1934-36'. . 


69.5 


1926-36' 


66.3 







' Averages of annual ratios. 

Source; Statistics of Income. Current liabilities do not include accrued expenses. 



Table 35. — Ratio of net working capital to capital assets for total manufacturing 
classified by asset size, 1931-36 



Asset classes 



1931 


1932 


1933 


1934 


1935 


1936 


1931-33 1 


1934-36' 


Percent 


Percent 


Percent 


Percent 


Percent 


Percent 


Percent 


Percent 


38.9 


31.7 


38.0 


40.0 


44.3 


48.4 


36.2 


44.2 


51.1 


45.6 


51.7 


59.1 


61.3 


66.3 


49.5 


62.2 


54.7 


47.4 


55.0 


58.0 


64.8 


72.2 


52.4 


65.0 


53.8 


50.8 


57.3 


58.5 


66.4 


75.0 


54.0 


66.6 


58.4 


52.1 


57.5 


58.8 


65.6 


71.6 


56.0 


65.3 


56.8 


52.0 


59.7 


58.5 


67.3 


77.9 


56.2 


67.9 


55.2 


47.7 


53.0 


57.3 


62.4 


73.8 


52.0 


64.5 


48.4 


44.8 


49.7 


56.9 


62.5 


69.6 


47.6 


63.0 


47.7 


42.7 


45.4 


61.6 


60.9 


68.2 


45.3 


60.2 



1931-36' 



Oto $50,000 

$50,000 to $100,000... 

$100,000 to $250,000 

$250,000 to .$500,000. 

$500,000 to $1,000,000 

$1,000,000 to $5,000,000.... 
$5,000,000 to $10,000,000... 
$10,000,000 to $50,000,000.. 
$50,000,000 and over 



Percent 
40.2 
55.9 
58.7 
60.3 
60.7 
62.0 
58.2 
65.3 
52.8 



> Averages of annual ratios. 
Source: Statistics of Income. 



"72 CONCENTRATION OF ECONOMIC POWER 

The facts that manufacturing corporations as a group maintain over 
a long period about three-fifths as much net working capital as they 
have invested (net) in fixed plant and equipment and that different 
industries require varying proportions of working capital are significant 
conclusions to be drawn from table 34. The all manufacturmg pro- 
portion is nearer two-thirds in good times, but falls off to less than 
pne-half in 1932. Net working capital and fixed assets both declined 
in the depression years, the former falling off the more. In the 
recovery years 1934-36 net working capital increased while fixed 
assets remained constant. The textile group is characterized by an 
exceptionally high ratio; in 1936 they had almost a dollar of net 
working capital for every dollar of net investment in land, plant, and 
equipment. Concurrently with their high ratio, however, the textile 
companies also had a wide amplitude of fluctuation: in 1932 their 
ratio of 55 percent was under that for the food group, while their 
11 -year average was 80 percent. The stone group is marked by the 
lowest ratio, around 40 percent in good years and as low as one- 
quarter in 1932. Close to the bottom, and characterized by less 
vitality than that for the stone group, is the net working capital to 
net capital assets ratio of the lumber companies. This industry was 
the only one which by 1936 had failed to recover its pre-depression 
level. In fact, all the other divisions except the stone group had more 
than regained their 1926-29 standing by 1936. 

The emphatic response of this ratio to the recovery movement is in 
contrast to the sluggishness of the current ratio (cf. supra). The 
stability of the current ratio was due to commensurate increases in the 
current assets and current liabilities. This would nevertheless make 
for an increase in net working capital — -i.e., a widening of the spread 
between current assets and current liabilities— which, when compared 
with the relatively constant amount of fixed assets maintained in 
these years, would show a rising net working capital to fixed assets 
ratio. 

Interesting asset-class differences in the net working capital to 
capital assets ratio for total manufacturing are revealed by table 35, 
Up to the $5,000,000 asset level there is a definite upward progression 
of this ratio with asset size, over the 1931-36 period, from 40 percent 
to over 60 percent. Above that point the ratio is regressive. In 
only 1 year, significantly enough 1934, do the largest firms have the 
highest proportion of working capital. In the first 2 years the 
$500,000 to $1,000,000 class topped the list, while in , the remaining 
3 years the $1,000,000 to $5,000,000 class ranked first. In every year 
the lowest ratio, around 40 percent, was recorded by the smallest size 
class, while in every year but 1934 the largest class, $50,000,000 and 
over, had the next to smallest proportion of working capital. The 
recovery all along the line in these ratios since 1933-34 is clearly 
brought out. 

Comparison of the trends in the current ratio and the net working 
capital to fixed assets ratio is revealing. Concurrent declines would 
indicate a weakening of position, for the margin between current 
assets and current liabilities is decreasing at the same time that the 
firms may be having difficulty keeping on hand a supply of working 
capital sufficient to permit undertaking large new orders. 



CONCENTRATION OF ECONOMIC POWER 



73 



These two ratios for total manufacturing over the period 1926-36 
follow: 



Year 


Current 

assets to 

current 

liabilities 


Working 
capital 
to fixed 
assets 


Year 


Current 
assets to 
current 
liabilities 


Working 
capital 
to fixed 
assets 


1926 


3.38 
3.31 
3.41 
3.51 
3.48 
3.37 


64.5 
65.4 
66.5 
65.9 
58.6 
50.4 


1932 


3.12 
3.13 
2.78 
2.89 
2.95 


45.6 


1927 


1933 - 

1934 


50. 1 


1928 


58.9 


1929 


1935 


62.9 


1930 -- 

1931... 


1936 


66.8 







The marked weakening in the current position in 1930-32 is empha- 
sized by this comparison. The current ratio fell from 3.51 in 1929 to 
3.12 in 1932, while the net working capital to fixed-assets ratio declined 
concurrently from 65.9 in 1929 to 45.6 in 1932. In 1933 both series 
rose slightly, but in the next year the current ratio continued to 
decline while the other ratio rose. Thereafter the current ratio rose, 
but, unlike the net working capital to fixed-assets ratio, failed to regain 
its pre-depression standing. 

Large Manufacturing Corporations. 

Differences in the current ratio froni industry to industry and 
company to company are emphasized by tables 36 and 37 based on 
Standard Statistics data on 400 large corporations over the period 
1927-38, The figures in table 36 are period averages covering 1927-29, 
1930-33, and 1934-38, classified into 25 industrial groups. The ratios 
for each of these periods are averages of the annual ratios which are, 
in turn, aggregate ratios for all corporations in the industry group. 
Table 37 comprises a frequency distribution of the current ratios for 
each of the 400 companies, these ratios being grouped into three size 
classes. For this source, current liabilites mclude accrued expenses. 

The current ratio for the 400 companies (see table 36) is in general 
higher than that for all manufacturing corporations reported in 
Statistics of Income, and does not fall so consistently over the period 
covered by the data. The average for all 400 companies over the 
entire period 1927-38 stands at 5.3. Statistics of Income shows a 
corresponding average for total manufacturing of 3.2 over the period 
1926-36. The fact that the ratio for the Standard Statistics com- 
posite is higher than that for the universe of total manufacturing in 
Statistics of Income is probably due to the fact that the Standard 
Statistics sample is limited to the large corporations. As the asset 
size of corporations increases, the current ratio also increases, the 
Statistics of Income data for total manufacturing show. This would 
explain the disparity between the current ratio for the Statistics of 
Income universe and the Standard Statistics sample. The difference 
in trend may possibly be acco^unted for on somewhat similar grounds. 
The current ratio for total manufacturing in Statistics of Income fell 
consistently over this period from 3.4 in prosperity to 3.3 in depression 
and then again from 3.3 in depression to 2.9 in recovery. The move- 
ment of the Standard Statistics ratio for the corresponding periods 



74 



CONCENTRATION OF ECONOMIC POWER 



was from 4.9 in the prosperity period up to 6.3 in the depression period 
back to 4.7 in the recovery period. These large corporations in the 
Standard Statistics composite considerably strengthened their current 
position in the depression period, whereas the universe of all corpora- 
tions was unable to maintain the current position. The large cor- 
porations in Statistics of Income, however, had a higher ratio in 
depression than in recovery, and if they also had a higher ratio in 
depression than in the 1926-29 prosperity years (a question which 
we cannot answer from the present Statistics of Income compilations) , 
the large size of the 400 companies would explain the difference in 
trend. Perhaps if the Statistics of Income material covered the 
two additional years 1937 and 1938 covered by the Standard Statistics 
sample, this difference would be modified further. 

Table 36. — Current ratio ^ for Standard Statistics composite of 400 corporations, by 
industry and by periods 1927-29, 1930-83, 1934-38, and 1927-38 



Industry 



Advertising, printing, and publishing 

Autos and trucks 

Auto parts 

Auto tires 

Beverages 

Building and real estate 

Chemicals, fertilizer 

Containers.- 

Electric equipment and radio ._._ 

Food products 

Household products 

Leather shoes . 

Machinery 

Medicine, drugs 

Metals 

Miscellaneous securities. 

Office and business equipment 

Oil producing and refining 

Paper and paper products 

Railroad equipment. 

Shipping and shipbuilding 

Steel and iron 

Sugar producing and refining :.. 

Textile and apparel 

Tobacco products 

^Tain^y manufacturing 

All other companies 

All companies 



Number 
of com- 
panies 



365 
35 



4.1 
3.5 
4.2 
4.8 
8.2 
6.2 
7.S 
5.3 
5.7 
4.2 
7.1 
6.0 
6.4 
4.1 
3.8 
4.8 
6.4 
4.9 
2.8 
7.3 
4.6 
5.2 
5.3 
7.2 
11.0 



5.0 
3.6 



1930-33 



1934-38 



6.3 
5.3 
6.8 
8.3 
4.8 
9.2 
10.2 
6.0 
8.8 
5.7 
10.0 
10.5 
11.1 
4.5 
2.9 
5.8 
8.4 
5.4 
4.9 
9.9 
5.5 
6.8 
5.7 
9.8 
20.1 



6.4 
4.1 



6.5 
3.4 
4.3 
5.4 



4.3 
6.4 
4.7 
7.1 
7.4 
6.8 
4.0 
4.0 
5.1 
5.9 
3.7 
3.2 
7.1 
4.9 
5,3 
5.8 
4.9 
11.5 



4.8 
4.3 



1927-38 



5.8 
4.0 
5.1 
6.2 
5.5 
7.4 
8.1 
5.1 
7.0 
4.9 
8.1 
8.1 
8.1 
4.2 
3.6 
5.2 
6.8 
4.6 
3.6 
8.1 
5.0 
5.8 
5.6 
7.1 
14.2 



5.4 
4.1 



' Current assets to current liabilities, the latter including accrued expenses. 
Source: Standard Statistics. 

The highest current ratio in the Standard Statistics sample was 
recorded by the tobacco industry. This ratio of over 14 is exceptional. 
The next highest ratios were recorded by the chemical and fertilizer, 
railroad equipment, household products, leather and shoe, and ma- 
chinery industries. These were around the eight-point level. The 
lowest current ratios for the industries covered by the Standard 
Statistics sample are in the paper and paper products industry and 
the metal industry. Both of these industries had a ratio of 3.6 over 
the entire period, but even this low ratio is higher than that recorded 
by all manufacturers in Statistics of Income, namely 3.2. Other 
industries in the Standard Statistics composite near the bottom rung 



CONCENTRATION OF ECONOMIC POWER 



75 



of the current ratio ladder are auto and truck manufacturers and 
medicine and drug manufacturers. 

All of the industrial groups in the Standard Statistics sample except 
advertising and printing, beverages, metals, sugar, and the nonmanu- 
facturing classifications exhibit a trend over the period similar to that 
for the total sample; that is to say, the highest ratio is recorded in the 
depression years. In the case of advertising, printing and publishing, 
sugar producers and refiners, and the nonmanufacturing classifications 
the current ratio rose over the entire period. In the case of the bev- 
erages group, the ratio actually fell over the entire period, while in^ 
the case of the metals group the ratio was lower instead of higher in 
the depression years 1930-33. 

Table 37 illustrates the dispersion of the current ratios for each of 
the 400 companies in the Standard Statistics sample. In each of the 
years 1927-38 only a modest fraction of the companies — 4 to 9 per- 
cent — had a current ratio less than 2, while in several years — par- 
ticularly the depression years — over half the companies had current 
assets which were at least 6 times their current liabilities. 



Table 37. — Frequency distribution of current ratio, * Standard Statistics composite 
of 400 corporations, 1927-38 



Year 


Number of companies with 
current ratio — 


Year 


Number of companies with 
current ratio — 




Under 2 


2 to 6 


6 and up 


Under 2 


2 to 6 


6 and up 


1927._. 


26 
17 
23 
18 
23 
22 


200 
208 
195 
163 
116 
112 


174 
175 
182 
219' 
261 
266 


1933 

1934 


23 
19 
19 
22 
37 
23 


132 
158 
200 
240 
232 
187 


245 


1928 


223 


1929 


1935 


181 


1930. 


1936... : 


138 


1931 


1937 


131 


1932 


1938 


190 









' Current assets to current liabilities, the latter including accrued expenses. 
Source: Standard Statistics. Tabulated at Income Tax Study, Philadelphia. 

So much for the current positions of these large manufacturing cor- 
porations. The ratio presented in table 38 is designed to shed some 
light upon the use to which corporations put their capital. This 
ratio, net working capital to net property account, tells how much 
of their funds is invested in net working capital as compared with how 
much is invested in fixed capital. The characteristics of this ratio 
have previously been explained. 

There is small difference between the net working capital to net 
property ratio for the 399 ^ companies of the Standard Statistics 
sample and the same ratio for the total manufacturing group in 
Statistics of Income. The Standard Statistics composite shows a 
ratio of 58 percent over the period 1927-38, while the corresponding 
figure for the total manufacturing group in Statistics of Income is 
60 percent. The asset size break-down of the net working capital 
to capital assets ratio for total manufacturing in Statistics of Income 
reveals that the largest companies have slightly smaller ratios than 
the medium-size companies but not less than the smaller corporations. 
The dominance of the medium-size companies in the universe might 
account for the slight differential that exists between the Standard 

' Oppenheim Collins accounts show no fixed assets, so this company had to be excluded from table 38. 



76 



CONCENTRATION OF ECONOMIC POWER 



Statistics and the Statistics of Income ratios. The trend of the pro- 
portion of working to fixed capital is also the same in both sets of 
data. It falls from a high, in the case of Statistics of Income, of 65.6 
percent in 1926-29 to 51.2 percent in 1930-33 and then rises again to 
62.9 percent in 1934-36. In the case of the Standard Statistics group 
the ratio falls from 64 percent in the period 1927-29 down to 53 per- 
cent in the period 1930-33 and then rises to 57 percent in the period 
1934-38; that is to say, both sets of data show that corporations have 
a smaller proportion of working relative to fixed capital in depression 
years than in prosperity years. 

Table 38. — Ratio of net working capital to net property account for Standard Statis- 
tics composite of 399 corporations,"^ by industry and by periods, 1927-29, 1930-33, 
1934-38, and 1927-38 



Industry 



Number 
of com- 
panies 



1927-29 



1930-33 



1934-38 



1927-38 



Advertising, printing, and publishing 

Autos and trucks -. 

Auto parts 

Auto tires -- 

Beverages ---- 

Building and real estate -.- 

Chemicals, fertilizer 

Containers - 

Electrical equipment and radio. 

Food products. - 

Household products 

I;eather shoes -. 

Machinery , ..- 

Medicine, drugs 

Metals --.- 

Miscellaneous securities. -.. 

Office and business equipment 

OH producing and refining 

Paper and paper products 

Railroad equipment 

Shipping and shipbuUding 

Steel and iron 

Sugar producing and refining 

Textile and apparel 

Tobacco products - 

Mainly manufacturing. ^ 

All other companies 

All companies 



Percent 

92 

97 

80 

112 

193 

56 

80 

44 

261 

71 

99 

264 

173 

326 

34 

72 

233 

45 

16 

69 

35 

32 

72 

127 

626 



Percent 
115 



84 

203 

50 

68 

40 

179 

66 

79 

240 

166 

240 

23 

57 

163 

37 

27 

48 

25 

26 

56 

101 

726 



Percent 

159 

97 

99 

102 

277 

59 

66 

50 

194 

83 

97 

277 

181 

257 

29 

63 

127 

34 

28 

42 

32 

30 

56 

105 



Percent 
128 
94 
85 
99 
232 
55 
70 
45 
206 
74 
92 
262 
174 
268 
28 
63 
166 
37 
24 
51 
30 
29 
60 
109 
736 



365 
34 



64 



1 The sample is composed of 400 corporations, but it was impossible to compute this ratio for one of them, 
Oppenheim Collins store. 

Source: Standard Statistics. 

In the industrial break-down of the net working to fixed capital ratio 
for the Standard Statistics composite, the tobacco group stands out 
prominently. Its ratio of 736 percent for the period 1927-38 is far 
above that for any other group. The other ratios vary from the low 
of 24 percent for paper and paper products to 268 percent for manu- 
facturers of medicines and drugs. Other industries in the group with 
a high ratio of, say, 200 percent and over, are leather and shoes, bever- 
ages, and electrical equipment and radios. Others in the low group, 
say, 50 percent or less, are metals, shipping and shipbuilding, oil pro- 
ducing and refining, steel and iron, and containers. These last indus- 
tries are generally characterized by heavy investment in fixed plant, 
so one would expect a lower ratio of working to fixed capital. The 
high ratio reported by tobacco is to be explained on the grounds of 



CONCENTRATION OF ECONOMIC POWER 77 

relatively high inventory holdings,^ The other high ratios, reported 
by medicines and drugs, leather, beverages, and electrical-equipment 
producers, seem somewhat more logical. 

We have seen that the trend of this ratio for the period is down, 
then up; that is, the ratio is relatively high in the prosperity years 
1927-29, low in the depression years, and somewhat higher again in 
the recovery years 1934-38. This trend was also found in the Statis- 
tics of Income compilations. In the Standard Statistics group 16 in- 
dustries and the so-called mainly nonmanufacturing group follow the 
pattern for all 400 companies. Four industries have a rising trend 
over the entire period : Tobacco, paper producers, beverages, and ad- 
vertising, printing, and publishing. Five had a declining trend over 
the entire period: Chemical and fertilizer, office and business equip- 
ment, oil producers and refiners, railroad equipment, and sugar pro- 
ducers and refiners. 

Notes payable. — Since the banking holiday in 1933, and even before, 
there has been considerable discussion concerning the decline of the 
commercial bank loan. Some commentators have been known to 
attribute much of the former weakness in our banking system, and 
much of the banking system's inability to earn satisfactory profits, 
to the decline of their short-term advances to industry, particularly, 
and to trade. Most tabulations of corporate financial data do not 
show a break-down of current liabilities into notes payable and 
accounts payable of the enterprise. Even those which do show such 
a break-down rarely give the added desirable information of whether 
the notes payable are to banks, to trade, or to others. In fact, corpo- 
rate reports themselves failed to give this last-mentioned break-down 
imtil the institution of the Securities and Exchange Commission's 
regulations for the financial statements of registered American corpo- 
rations. However, the S. E. C. materials giving a break-down of 
notes into banks, trade and others do not cover a sufficiently long 
time period to permit any very satisfactory conclusions to be drawn 
concerning a possible decline in bank loans to industry. Therefore, 
in order to provide some information on this question, even though 
not wholly satisfactory information, the break-down of notes and 
accounts payable for the 400 corporations in the Standard Statistics 
composite was obtained. The only break-down feasible over the 
period 1927-28 was that into notes payable and accounts payable. 
Even in the case of this one break-down, it was necessary to assume 
that, if the corporation showed no break-down of current payables 
on its balance sheet, all of this item consisted of accounts payable. 
This is obviously an assumption which would not hold true in every 
instance. Assuming, however, that the failure of this hypothesis 
to be borne out by the facts did not change considerably over the 
period, our general conclusion as to changes in the magnitude of the 
notes payable frequency in the case of these corporations may be 
tolerably significant. If our discussion is to be related particularly 
to the commercial loan it is necessary to assume -further that notes 
payable on the balance sheet of a corporation are probably notes 
payable to banks. This, too, is not a strictly valid hypothesis for 
every instance which may occur. . Assuming again, however, that the 

' There is a lot to be said for the thesis that the tobacco group should be included in trade rather than 
manufacturing; the argument runs that tobacco companies are more distributors than manufacturers. 
Distributors usually have large inventories. 



78 CONCENTRATION OF ECONOMIC POWER 

areas in which this hypothesis are not true do not change greatly over 
the period 1927-38, the conclusion we draw from the trend of the 
figures may be tolerably significant. 

The results obtained from analyzing a frequency distribution of the 
break-down into notes and accounts payable of the 400 corporations 
over the period 1927-38 are presented in table 39. From this table 
several conclusions are obvious. The most important is that in 
practically every year out of the period approximately two-thirds of 
the 400 corporations in the sample did not use any notes payable for 
their working capital. This is undoubtedly an exaggerated figure, 
but it gives some idea of the number, of larger corporations which 
did not rely on commercial banks for their working capital during 
the period 1937-38. 

There are certain changes from year to year in this proportion.® 
Starting out at 64 percent in 1927 it rose to 69 percent in the next 
year and after a slight falling back in 1929, jumped up to 77 percent 
in 1930. In the following year it again fell back to slightly under 
70 percent and stayed at that level until 1935 when it went into a 
decline. This decline was not arrested until 1937 when it hit 58 
percent, the lowest over the entire period. In 1938 banks were again 
on the short end, 70 percent of the companies showing no notes 
payable. It is particularly striking that the lowest percentage was 
recorded in 1937, a year when there was a marked expansion in 
business activity and also a year when there was alleged in some 
quarters to have been a stringencyof bank credit for business enter- 
prises. There may indeed have been a stringency in the absolute 
sense but there can hardly be said to have been a stringency in the 
relative sense when there were more corporations with not es payable 
in that year than in any other year of the entire 1927-38 period, if 
the experience of the Standard Statistics composite is representative. 
Furthermore, the precipitous rise of the ratio in the next year to 70 
percent, a proportion as high as that obtained in any other year of 
the period, is evidence that the corporations were freeing themselves 
from dependency upon bank or mercantile loans for working capital. 

» The smallness of these changes, partieularly between the years before and after institution of the S. E. C, 
lends support to the belief that this break-down into uotcs and accounts is not far wrong in absolute terms. 



CONCENTRATION OF ECONOMIC POWER 



79 






■-lOtO'*N««OOW<-<'^'VO>00-HMO'HrtlOe<JO»>-' 






M-H-Ht-i-<rt«0-H'*NO>-iO-<«'C>»OOi-lOe«90»H'VO 



gNiopo 



Tt<c^Oio>-iooiocQa>oei3top>oc^cooor4C4 os'co n ^ t>. lo 



• c^oio^ooioeooigeBtooioNtDooN 



gsss 



>n S 03 "^ 



ooiocoiNc^MOOMTfirtcortioioi-i^ONi-iiOTroco 






OU5 8 



Mr-ie>S'*OO«OO«0O'-<'-lO-*«OO00i-loe<IOOOi-c 



5£ f*"-^ 
^ o 5-9 



gal 



1-1^ W^H fH 1-1 »-l i-( rH T-H f-H i-( W 1-4 



ftga 

to o 03 



0'Hi-iio-<i-c»HO>-IU5tOW<*''-lt~5D'He>>0-^i-l>^'*0>iO 



.ogoogj 



Mi-lCMi-i.-iNNO>-lt^>H.-4i-iOMNOO>-cO>-n-loe«»-' 



« an 



9^'*S 






5D-H^^NO»tO«00'00>000'*''^«OOOCONO»>OlO'>9'0»0 



>-H^^NO»tO«00'00>000"i(l-^tOOOtO 






OrH«^Ne<<i-iO'Ht^oo^>oc<"oa>>-ci-ii-(N.-io^M^ 



oo8 



.-ccocqN^-<»<c<500i--Ot-(No-*eoo oo o o ^h ro o n m 



■wad 









too5cc'j«'-ito"5mo»coooNoococ»>ooo«ONaeiOT»<'*oo 



ig;'j<'-ito"5mo»coooNoococ»>ooo«o 



S.SaS< 



.Hi-(i-llOONC^OOt>-O'fl<>O<-<>0l0O'-Hi-IOC0r1i-te000 



■ ooooco 



i-Hi-iTi<ooN-«<0'-itO'H.-ii-(i-«rtie>0'>»"00'-i'*'-<'-iN 



!S*gS 






iOrtNioT»iooi»coo»-<»"oe-JO»«>OTfio»ONoecc«ooo 



'^^ 



-<»<ioe-JO»«>OTfio»oNoecc«oot 



J I--. 1-1 lO 



S3 



o-g a I 



0'-<'^'^ONrtO"-IOOC^'«»iM'^»0000«0'-lOCOC^>Ot~r^ 



•« 5.0 

o »o t> 



-HN— lTl<t-lT)lT)tOt-l»e<l ON r-lM^^lOl-IO'-lP»ONO 



;MQ0g5 






tcoiNe^«to^«oocoiNc«50tOT»<c<ioot^'HOcoe»5eo — OS 



g5* 
8S 



3 *- S o 

■7 S S =« 



t~cofO'*No»eoo!>«ot->gio^jhO»'oooot-t~oooco 



.-< N —l C< 



o»eoo!>«ot->gio-HjH 

^H f-( N »-t N N N 



IN rH M m-H 



CC r-^ 'H 



<J <^ 



o o 

aa 

3 3 



J - M O '^ — H J3 I 



"' » " S l-g. 

g g, 3 S " M« 



[osa a 



lj I 



g>S.S.S.2 ^3 fe.g-S «= 5^ aS.a g a! 



M o a 3 

— ' '^^ "^ a ^ 
g gPn OfL, 

3 a. o iS ft 5 



03 t? S 






80 



■2 <y 
*~ c 

to o 

.20 






o 



CONCENTRATION OF ECONOMIC POWER 



»c o rt ^ 



Ota § 






o>HcpO'^^«OMt^>oNOo>-ieor«<>-<0'Hoo>-i»-i«>n 



OSOlTj-i-l 



■-(T(<>0<NOINOOONOi-ltO— i«lO--tDO-<-<rH-HC^O II O-JOOM 



toooecooeoto^-«oooo-^■>^•oeo•oo^~•ffl«a><OJgtD>o^ gogjg 



0.0 a ' 












o«mco— iioMNOO-oieooNioeoe^-o-K-*© >0'-'5Dt- Sm'^S 



i-ICO'«<M^(MIMOOC)MOfflOMe^O-H<N^O'HOC^O 



. r»'^c^w3'^i-i^»o0'^oscocooit^co©oot^*^r^c^05 



OOCCC^'^t^C<DO"-lOMiN<«iO«'ON'-'OdOO'-itO>0 



-<t~5Ct~ 



*HC<»T}i«»-<ioc<io^^coc^i-<oo^Hioeoc^oo^i-tcOi-tTt<t-i 



MM 



0^0»0<M»^'^tOOOOOi-<^CC^-<^COIO-^COr^CO-^COOO I 









o<-iNNON—io>-iotoo»o>oc^"9"oe<<ooo-HcotO'^ 



^ r» CO t^ 



c<-«<e<i-*oNP)OMC»M-H«0'0-«j<e>»iMO'-io-«(<i-ieoM 



lOOOM^-«3<OOCDCOt*OSOO^W5W5'^CC't^'-<COO»t^NTj<i-HO 



)M^-«3<OOCDCOt*OSOO^W5W5'^CC'r^'-< 



CO t~»«o 



.-I i-l"-! •fl<«5i-l'* 






O kO S 



0'HNC<.-<N^oc>»cocoi-He<oO'oeo<-ii-iooO"^m"-iec 



c^■»^D^~ 



Mco'0>o>-ie<i>-<ootoesi-iMO"3'-ie-iT-io—i— icooeoo 



3 eo-^ c 



lOO>p«NOOt»t<50000-H«5a»u3rtQ«0«e<SO»«00>OtDCO 



>O«N00t»t<50000-H«5a»u3rtO«0« 



^ -- s« 






-S D.S 



oooooecoo-^MP»t-ie<oeocj'-<NO>-iO'«'e>i'«eo 



Ne<Tjiio.-icoNooto-Hi-ti-io>oe<ii-ic»^ONC<»'<^o 



lOrt -<OJ 



a ft* 



lO i-H (^ lO CO to t~ CO 0> 00 e<3 O N lO M O t~ 'J" N 0> «0 >-l lO "3 « C0O»O>^ 

.-Hi-( THrt 1-Hrt e^ •"!« >-> rH ""H tDt->-llO 



go A.2 



t^eot^OTj<c^05eoot*«ot*u5io.-<'^os»ocoot^t*ooo<o 



»0 Q »CO 

toocoo 

CO"-l " 



S8 



EC 



i9 



s 

"OH 3 



o o 

ae 

S 3 

« 



3^2 S 
CO wis t-^^^2 « 

>•= S ° § o : 



J. a 
§o..a3^-g2 



£f'S 2«r 






03ft a 



^4J ~-l 



Sag 



' -^ w S _ ft-- B <" 



^s^liSssS-- 



03 '-3 « 
300 






tOOQCOfc-'t-' <1 Z 



CONCENTRATION OF ECONOMIC POWER gj 

Of those corporations having an item of notes payable among their 
current Uabilities on the balance sheet, how many had a relatively 
large amount of notes relative to total payables and how many had 
a relatively small amount? On table 39 a clue to the answer of this 
question is presented by the second and third columns under each 
year, which tell how many corporations have notes payable equal to 
less than 45 percent of their notes and accounts payable but greater 
than zero, and how many have notes payable equivalent to 45 per- 
cent or more of their notes and accounts payable. In the first 6 years 
of the period — that is, through the trough of the depression in 1932 — 
there was consistently a smaller number of corporations in the to 
45 percent category. In the next 4 years, carrying the recovery move- 
ment which commenced in 1933 up through 1936, the reverse was 
true. That is, more corporations having notes payable were in 
to 45 percent category than were in the 45 percent and up group. 
In the last 2 years covered the break-down reverted to the pre-recovery 
picture in which a larger number of corporations had a relatively 
large amount of notes payable. 

This picture is somewhat surprising. In the recovery period when 
one would expect corporations to be drawing heavily upon commercial 
loans, we find that the majority of those having notes payable are in 
the to 45 percent category — that is to say, those having notes pay- 
able do not have a very large amount thereof. This tendency moreover 
is unaccounted for by a larger number of corporations being in the 
notes-payable category in the recovery years 1933 through 1936. In 
fact, larger percentages were recorded in 1930 and 1932 than were 
recorded in any of the years 1933 through 1936. The fact that the 
relative proportion for the corporations with notes payable could 
change so decidedly from 1936 to 1937 is also surprising. In the 
former year, of 148 corporations having notes payable, 81 had a rela- 
tively small amount, and 67 had a relatively large amount. In the 
next year of the 167 corporations having notes payable, only 60 had 
a relatively small amount, while 107 had a large amount. Here is 
evidence that the banks in 1937 not only granted more credit in the 
form of notes to business, but larger credits since more of the cor- 
porations were in the 45 percent and up category. A similar picture 
is true in 1938 except for the magnitudes involved, then 48 corpora- 
tions were in the to 45 percent category and 73 had a relatively 
large amount of notes payable. 

The conchisions of the preceding paragraph are not altered sig- 
nificantly if we limit ourselves to the primarily manufacturing indus- 
tries comprising 365 companies in the Standard Statistics composite. 
The number of companies in each of the 25 industrial categories is 
hardly large enough to permit detailed analysis, but it may be ob- 
served that certain industrial groups are characterized by a relatively 
large amount of dependency upon notes payable for working capital 
and others seem to be independent of them. Those industries in 
which there are a relatively large number of corporations — that is, 
around 50 percent — dependent upon notes payable for some of their 
working capital are automobile tires, food products, leather and shoes, 
medicines and drugs, miscellaneous, paper products, shipping and 
shipbuilding, sugar producers, textile manufacturers, and tobacco 
products. At the other extreme are those industrial groups charac- 
terized by little if any dependence upon notes payable for working 



82 



CONCENTRATION OF ECONOMIC POWER 



capital. .Among these are advertising, printing and publishing, 
beverages, containers, electrical equipment and radios, office equip- 
ment, and railroad equipment. The relative standings of these indus- 
tries as far as their dependence upon notes payable for working capital 
is concerned seem to change little over the 12 years covered. 

Due to the small number of corporations in each industrial group, 
too much significance should not be attached to the industrial differ- 
ences pointed out here on a frequency distribution basis. More 
significant seem to be the conclusions of the preceding paragraphs 
relating to the proportion of all corporations in the sample which 
were and were n^t dependent upon notes payable for some part of 
their working Capital during the period 1927-38. A clearer view of 
industrial differences in this break-down is given by table 40, which 
differs from table 39 in that the latter is a frequency distribution 
while table 40 contains rattos of aggregates. 

Table 40. — Ratio of notes payable to notes and accounts payable for Standard 
Statistics composite of 400 corporations, by industry and by periods 1927-29, 
19S0-SS, 19S4-S8, and 1927-38 



Industry 



Number 
of com- 
panies 



Notes payable to notes and 
accounts payable 



1927-29 1930-33 1934-38 1927-38 



Advertising, printing, publishing 

Autos, trucks - 

Auto parts 

Auto tires 

Beverages 

Building supplies 

Chemicals, fertilizer ^.. 

Containers , 

Electrical equipment 

Food products. 

Household products 

Leather, shoes 

Machinery 

Medicines, drug 

Metals 

Miscellaneous manufactures 

Office equipment 

Oil products and refining 

Paper and its products 

Railroad equipment 

Shipping and shipbuilding 

Steel and iron 

Sugar products and refining 

Textiles, apparel 

Tobacco products ,. 

Mainly manufacturing 

Nonmanufacturing 

Tbtal 



Percent 

5 

6 

25 

39 

21 

11 

8 



3 

9 

25 

64 

12 

36 

34 

31 

3 

9 

40 

14 

32 

3 

44 

60 

58 



Percent 

14 

2 

20 

13 

52 

13 

6 



9 

16 

27 

20 

15 

16 

70 

37 

8 

12 

3 

33 

25 

13 

51 

63 

26 



Percent 
8 
3 
17 
31 
33 
17 
9 
13 
20 
45 
34 
35 
20 
12 
41 
26 
26 
25 
15 
11 
1 
15 
28 
65 
58 



Percent 
10 
3 
20 
30 
36 
14 
8 
6 
12 
33 
29 
36 
16 
19 
49 
31 
15 
17 
17 
19 
17 
11 
40 
60 
47 



365 
35 



400 



28 



26 



Source: Standard Statistics. 



From table 40 we can observe that the textile group is most reliant 
(in percentage form) upon bank loans, and the auto truck group 
least reliant. On the average over the entire period 1927-38, 60 
percent of the notes and accounts payable of the 30 firms in the 
textile group were composed of notes payable. At the other extreme, 
for autos and trucks, only 3 percent were in the form of notes payable. 
The other industries hovering near textiles at the top are metals, 
tobacco, and sugar. Those close to autos and trucks at the bottom 
are containers, chemicals, and advertising and printing. 



CONCENTRATION OF ECONOMIC POWER §3 

As far as the temporal trend in the break-down is concerned, the 
tendency is for a slight rise over the entire period. For all 400 
companies, 23 percent of the notes and accounts payable were in the 
form of notes payable in 1927-29. In the depression period 1930-33 
the corresponding percentage was 25, and ui the recovery period 
1934-38 it was 28 percent. This rising trend is to be observed in 9 
of the 25 industries for which specific figures have been calculated. 
In 3 industries there is a declming trend of the ratio of notes payable 
to current liabilities. Six industries have a higher ratio in depression 
than in the prosperity or recovery periods, and 7 mdustries have a 
lower ratio in depression than in either of the terminal periods. 

Small Manufacturing Corporations. 

The ratio of current assets to current liabilities is presented in 
table 41 in frequency distribution form for a sample of small manu- 
facturing corporations classified iato five, selected industrial groups 
and covering the years 1925-36. Five different size classes of the 
current ratio are distinguished: less than 1, 1 to 2, 2 to 3, 3 to 4, and 
4 and over. These five classes are further broken into three percentag-^ 
groups. The first percentage group is that having a current ratio o{ 
less than 1. This group may be characterized as low current ratio^ 
Secondly are those with a current ratio of 1 to 4, which may be 
considered in the medium current ratio category. Finally, we have 
the percentage of corporations in the category of 4 and over. Such 
corporations may be characterized as high current ratio enterprises. 

The percentages of companies falling in the low and the high current 
ratio categories appear to be related to the business cycle. Of the 
total number of companies in the sample m each year, 26 or 27 percent 
were in the low category before 1929. The percentage fell to 23 ui 
1929 and then rose to 34 percent in 1932, after which it fell to 27 
percent in 1936. That is to say, from a fourth to a third of these small 
manufacturing corporations, depending on the phase of the business 
cycle, have a current ratio which is definitely low. At the other 
extreme, the companies having a current ratio of 4 and over, we find 
a fifth to a fourth of the companies in the 1920's. The figure re- 
mained at about a fourth during the 1930's. The remaining 50 percent 
or so of these small manufacturing corporations had a current ratio 
which is what may be termed medium, that is, ranging somewhere 
between 1 and 4. 

Accrued expenses are included in the denominator of the current 
ratio based on the tabulations covering the small manufacturing 
corporations. This was not the case, it will be remembered, with the 
current ratio based on the Statistics of Income tabulations, because 
these latter do not show accrued expenses separately. 



259845 — 10— No. 1.5- 



84 



CONCENTRATION OF ECONOMIC POWER 



Table 41. — Frequency distribution of the current ratio by selected industries, 
sample of small manufacturing corporations, 1926-36 



Industry and year 


I«ss 
than 1 


Per- 
cent- 
age, 
less 
than 1 


1-1.9 


2-2.9 


3-3.9 


4 and 
over 


Per- 
cent- 
age, 
4 and 
over 


Total 


1925 


Number 
of com- 
panies 
79 
8 

25 
57 
55 


Per- 

■ cent 
49 
5 

14 
34 
30 


Number 
of com- 
panies 
44 
65 
70 
43 
42 


Number 
of com- 
panies 
11 
57 
32 
17 
27 


Number 
of com- 
panies 
3 

20 
12 
11 
9 


Number 
of com- 
panies 
26 
28 
46 
39 
48 


Per- 
cent 
16 
16 
25 
23 
27 


Number 
of com- 
panies 
163 




178 




185 




167 




181 






Total --- -- 


224 
149 
75 


26 
30 
20 


264 
169 
95 


144 
87 
57 


55 
27 
28 


187 
72 
115 


21 
14 
31 


874 


Failures ^ 


504 
370 






1926 


91 

18 
24 
70 
54 


50 
9 

12 
37 
28 


50 
81 
80 
45 
45 


14 
49 
39 
24 
29 


6 
17 
13 
12 
20 


24 
37 
45 
37 
46 


13 
18 
22 
20 
24 


184 




202 




201 




188 




194 






Total 


257 
182 
75 


27 
31 
19 


301 
193 
108 


155 
98 
57 


67 
34 
33 


189 
72 
117 


20 
12 
30 


969 


Failures 


579 




390 






1927 


84 
16 
28 
69 
48 


50 
9 
15 
40 
26 


39 
75 
69 
34 
48 


11 
47 
36 
20 
31 


7 
13 

9 
12 
13 


28 
29 
41 
38 
46 


17 
16 
22 
22 
25 


169 




180 




183 




173 




186 






Total . --. 


245 
174 
71 


27 
35 
18 


265 
165 
100 


145 
82 
63 


54 
19 
35 


182 
61 
121 


20 
12 
31 


891 


Failures 


501 




390 






1928 
Bakeries - . 


78 
13 
29 
57 
34 


49 
9 
18 
38 
20 


33 
60 

58 
30 
48 


19 
33 
28 
24 
22 


4 
13 
14 

9 
15 


24 
32 
33 
31 
55 


15 
21 
20 
21 
32 


158 




151 


Furniture 


162 




151 




174 






Total 

Failures - 


211 
138 
73 


27 
34 
19 


. 229 
137 
92 


126 
59 
67 


55 
21 
34 


175 
53 
122 


22 
13 
31 


796 
408 


Survivors 


388 






1929 


62 
11 
20 
46 
33 

172 
114 
58 


42 
8 
14 
33 
20 


42 
54 
52 
37 
39 


13 
26 
27 
10 
23 


6 
9 
17 
11 
15 


26 
31 
29 

37 
58 


17 
24 
20 
26 
35 


149 




131 


Furniture 


145 


Stone and clay . - 


141 


Machine tools - 


168 






Total - 


23 
33 
15 


224 
123 
101 


99 
41 
58 


58 
14 
44 


181 
50 
131 


25 
15 
33 


734 


Failures 


342 


Survivors . 


392 






1930 
Bakeries 


82 
16 
33 
52 
44 


44 
9 
18 
31 
22 


40 
66 
65 
41 
45 


23 
43 
41 
21 
29 


7 
21 
12 

6 
14 


33 
37 
48 
47 
67 


18 
20 
25 
28 
34 


185 


Men's clothing 


183 


Furniture 


189 


Stone and clay ... 


167 


Machine tools 


199 






Total 


227 
140 

87 


25 
37 
16 


247 
122 
125 


157 
55 
102 


60 
16 
44' 


232 
50 
182 


25 
13 
34 


923 


Failures 


383 


Survivors 


540 






1931 
Bakeries 


77 
26 
35 
61 
52 


48 
17 
21 
39 
27 


33 
36 
48 
35 
42 


16 
32 
24 
13 
22 


5 
16 
13 

7 
17 


30 
45 
60 
41 
60 


19 
29 
29 
26 
31 


161 


Men's clothing 


165 


Furniture 


170 


Stone and clay 


157 


Machine tools 


193 






Total 


251 
133 
118 


30 
44 
22 


194 
85 
109 


107 
30 
77 


58 
13 
45 


226 
38 
188 


27 
\3 
»5 


836 


Failures 


Tr 


Survivors 







CONCENTRATION OF ECONOMIC POWER 



85 



Table 41. — Frequency distribution of the current ratio by selected industries, 
sample of small manufacturing corporations, 1926-36 — Continued 



Industry and year 


Less 
than 1 


Per- 
cent- 
age, 
less 
thai 1 


1-1.9 


2-2.9 


3-3.9 


4 and 
over 


Per- 
cent- 
age, 
4 and 
over 


Total 


1932 
Bakeries . 


Number 
of com- 
panies 
68 
26 
39 
54 
67 


Per- 
cent 
47 
20 
28 
37 
36 


Number 
of com- 
panies 
28 
24 
34 
36 
29 


Number 
of com- 
panies 
18 
22 
19 
11 
25 


Number 
of com- 
panies 
5 
11 
13 
4 
12 


Number 
of com- 
panies 
25 
46 
36 
41 
53 


Per- 
cent 
17 
36 
26 
28 
29 


Number 
of com- 
panies 
144 




129 




141 




146 


Machine tools - 


186 






Total - 


254 
113 
141 


34 
54 
26 


151 
34 
117 


95 
24 

71 


45 
11 
34 


201 
28 
173 


27 
13 
32 


746 




210 


Survivors _ 


536 






1933 
Bakeries 


62 
23 

28 
49 
57 


46 
20 
23 
38 
32 


33 
29 
34 
28 
36 


10 
22 
19 
13 
22 


10 
13 
8 
6 
16 


19 
28 
35 
32 
46 


14 
24 

28 

*' 26 


134 




115 




124 




128 




177 






Total 


219 
73 
146 


32 

52 
27 


160 
28 
132 


86 
12 

74 


53 

6 

47 


160 
22 
138 


24 
16 
26 


678 


Failures .. •--- . 


141 




537 






1934 


64 
13 
25 
50 
51 


50 
13 
22 
41 
30 


21 
21 
24 
25 
39 


15 

22 

19 

7 

24 


7 
14 
15 

5 
12 


20 
28 
29 
35 
42 


16 
29 
26 
29 

25 


127 




98 




112 




122 




168 






Total 


203 
45 

158 


32 
64 
29 


130 
13 

117 


87 
8 
79 


53 
9 

44 


154 
9 

145 


25 
11 

27 


627 


Failures 


84 


Survivors 


543 






1935 
Bakeries . . -. 


57 
12 
23 
47 
50 


49 
13 
21 
39 
31 


23 
32 
17 
26 
32- 


11 
23 
30 

8 
17 


6 
7 

11 
3 

20 


19 
18 
27 
36 
40 


16 
20 
25 
30 
25 


116 




92 


Furniture 


108 


Stone and clay . . 


120 


Machine tools 


159 






Total ' ..... 


189 
21 
168 


32 
40 
31 


130 

12 

118 


89 

7 

82 


47 
4 
43 


140 

9 

131 


24 
17 
24 


595 




53 


Survivors .. 


542 






1936 


38 
13 
19 
41 
34 


36 
17 
19 
38 
23 


33 

29 
28 
22 
39 


8 
19 
25 
10 
18 


8 
5 
6 
6 
17 


17 
13 
22 
29 
41 


16 
17 
22 
27 
28 


104 


Men's clothing 


79 




100 


Stone and clay '. 


108 




149 






Total 


145 

1 

144 


27 
100 
27 


151 



151 


80 

80 


42 



42 


122 



122 


23 

23 


540 


Failures -.. . 


1 




639 







Source: Proposal 14, Income Tax Study, Philadelphia. The basic data cla'!sifled by asset, size, and 
area are available in Washington. See Appendix F, Hst of omitted tables (numbers 18 and 19). 

Examination of the industrial break-down of the current ratio dis- 
tribution reveals marked differences. In 1925, 49 percent of the 
bakeries had a low current ratio while only 5 percent of the clothing 
manufacturers fell in tliis category. The other industry groups' were 
ranged from high to low percent as follows: Stone clay, machine tools, 
and furniture. The percentage of clothing manufactucers in this low 
current ratio group rose somewhat-in the years following 1925. In 
1936 the spread between the high and low had changed decidedly. In 
this year, 1936, stone clay had the largest relative number of firms 
in the low-current ratio category with a percentage of 38; bakeries 



gg CONCENTRATION OF ECONOMIC POWER 

were in the same general neighborhood with a percentage of 36. 
Next highest was machine tools with 23 percent of the firms in the 
under-1 current ratio category. Fm-niture is next to the bottom with 
19 percent and clothing is still at the bottom, but the percentage in the 
under-1 category is now 17, whereas in 1925 it was 5 percent. 

Similar shifts in the industrial composition of the high-current 
ratio category, that is, current ratio of 4 and over, may be observed. 
In 1925 machine tools ranked at the top with 27 percent of their firms 
having a current ratio of 4 or over; bakeries and clothing manu- 
facturers tied for bottom place with 16 percent each; furniture and 
stone clay were between the two in that order. The 1929 line-up was 
roughly similar, with minor changes in the in-between groups. By 
1932 rather more definite changes in the industrial line-up of the 
highest current ratio groups were observable. Clothing was at the 
top with 36 percent of the firms falling in the group with a current 
ratio of over 4; bakeries were again at the bottom with 17 percent. 
The other industries from high to low were machine tools, stone clay, 
and furnitm"e. By 1936 clothing had plummeted to next to the bot- 
tom. The high ranking was accorded the machine-tool industry 
with 28 percent; bakeries were still low with 16 percent. Stone clay 
and furniture followed immediately after machine tools in the upper 
bracket. 

The machine-tool industry is at or near the top of the 4-and-over 
group in each year. The clothing group which was at the bottom to 
begin with, rose to the top and then finally fell again to near the 
bottom by 1936. The stone clay and furniture groups generally are 
rather stable and the bakery industry is found at the bottom or near 
the bottom in each of the years. That is to say, a relatively large 
percentage of the machine-tool manufacturers have an exceptionally 
high current ratio and a relatively small percentage of the baking 
corporations have an exceptionally high current ratio. 

The division of these small manufacturing corporations into those 
which survived throughout the periods covered — :1926-36 and 1930-36 
— and those which failed some time during the same periods, reveals a 
current ratio distribution such as one might expect. The failures 
predominate in the low-current ratio group; that is, about twice as 
many failures as survivors have a current ratio of less than 1 . Con- 
versely, in the high-current ratio category we find the survivors pre- 
dominating over the failures in the general fashion of 2 to 1. There 
can be no question but that the current ratio is an indicator of the 
financial stability of a firm and, for that reason, of the economic 
success of a firm.'" 

QUALITATIVE MEASURES 

The quantitative aspects of working capital have been discussed in 
some detail. Attention will now be directed to certain turn-over ratios 
which indicate the qualitative aspects of working capital. Turn-over 
is the circuit thi'ough which the typical working-capital dollar travels 
from cash to merchandise to receivables, back to cash. Since an 
increment of profit is generally made each time a working-capital 
dollar makes this circuit, a high turn-over implies a high efficiency il 
the profit margins do not differ. Actually, however, the character of 

'« The 1936 division into failures and survivors is not available. Although we do not know which of 
the firms existing in 1936 failed in 1937, 1938, or 1939, certainly some of them did. 



CONCENTRATION OP ECONOMIC POWER §7 

operations in different industries requires varying degrees of liquidity. 
This leads to differing turn-of^er ratios as well as differing profit 
margins. For the universe of all manufacturing corporations three 
turn-over ratios will be analyzed : Sales to current assets (tables 42 and 
43), sales to inventory (tables 44 and 45), and sales to receivables 
(table 46). These are supplemented by an additional ratio, inventory 
to receivables for all corporations (table 47) and for a sample of large 
corporations (table 48) . The data for all manufacturing corporations 
have been procured from Statistics of Income; those for the sample of 
large companies from Standard Statistics. 

All Manufacturing Corporations. 

The over-all turn-over ratio, sales to current assets, indi-?ates the 
number of times sales exceed, i. e., turn-over, the current assets. 
Table 42 presents this ratio by industries for 1926 through 1936, and 
shows that over the entire period the, food industry had the highest 
turn-over (3.58) while lumbei; had the lowest (1.66). The others were 
near the 2-to-l level. This corresponds closely to the earnings 
picture, which put the food group at the head of the list and the lumber 
division at the foot. Turn-over decreased about a third during the 
depression, more in some industries (metals and lumber) than in 
others (textiles and food). Current assets and sales both decreased, 
but the latter fell off the more sharply. The secular increase of the 
textile ratio, due primarily to a long-range decrease in current assets, 
is particularly noteworthy; even the depression failed to interrupt it. 
Most of the industries had fairly well recovered the pre-depression 
level of their ratios by 1936, current assets and sales both being off 
about the same amomit. 

Table 42. — Ratio of sales to current assets for total ..lanufaduring and 5 subgroups, 

1926-36 



Year 


Total man- 
ufacturing 


Foods 


Textiles 


Lumber 


Stone-day 


Metals 


1926 


2.46 
2.50 
2.53 
2.66 
2.42 
2.04 
1.68 
1.81 
2.08 
2 34 


4.18 
3.97 
3.95 
3.90 
3.6§ 
3.42 
2.87 
2.91 
3.26 
3.56 
3.65 
4.00 
3.23 
3 49 
3.58 


2.38 
2.30 
2.29 
2.39 
2.42 
2. 55 
2.29 
2.31 
2.54 
2.70 
2.68 
2.34 
2.39 
2.64 
2.44 


1.93 
1.89 
1.87 
1.86 
1.54 
1.40 
1.06 
1.28 
1.48 
1.76 
2.14 
1.89 
1.32 
1.79 
1.66 


2.42 
2.28 
2,26 
2.34 
2.03 
1.80 
1.39 
1.52 
1. 65 
1.78 
2.21 
2.33 
1.C9 
1.88 
1.97 


2. 12 


1927. 


2 23 


1928 

1929 

1930 


2.29 
2.00 
1.97 


1931.... 


1.68 


1932. 


1.06 


1933 


1.35 


1934.. 


1.65 


1935 . . . . 


1.99 


1936 _. 

1926-291 

1930-,33i 

1934-36 1. 

1926-36' 


2.56 
2.54 
1.99 
2.33 
2.28 


2.24 
2.31 
1.49 
1.96 
1.92 



' Averages of annual ratios. 
Source: Statistics of Income. 

The asset-size classification of these ratios iii table 43 rcvenis a 
definitely and progressively declining turn-over with increase in size. 
In every year, for total manufacturing, the liighest tfn'n-ovor is 
registered by the firms in the smallest-size class. Similarly the 
second and next from largest size classes have the lowest turn-Ov^er. 
The declin \s from a turn-over of 4 to a tuni-over of less than 2. 



88 



CONCENTRATION OF ECONOMIC POWER 



This, coupled with the fact that the larger firms are more profitable, 
leads to the conclusion that a relatively rapid turn-over implies a 
relatively small unit profit. ^^ In temporal comparisons of turn-over 
for particular firms within an industry, there would probably be a 
positive relationship between rates of turn-over and of earnings. In 
this case turn-over would indicate the efficiency of utihzation of the 
working capital. 



Table 43. — Ratio of 



to current assets for total manufacturing, classified by 
asset size, 1931-36 



Asset classes 


1931 


1932 


1933 


1934 


1935 


1936 


1931-33 1 1934-36 > 


1931-36 1 


Oto$50,000 


3.97 
3.14 
2.73 
2.45 
2.27 
2.04 
1.83 
1.91 
1.84 


3.46 
2.71 
2.30 
2.07 
1.84 
1.65 
1.49 
1.47 
1.52 


3.55 
2.83 
2,46 
2.19 
2.03 
1.80 
1.62 
1.56 
1.63 


4.14 
3.34 
2.93 
2.68 
2.50 
2.12 
2.00 
1.71 
1.76 


4.27 
3.56 
3.16 
2.89 
2.68 
2.40 
2.22 
2.02 
2.04 


4.43 
3.78 
3,40 
3.13 
2.94 
2.58 
2.41 
2.14 
2.32 


3.66 
2.89 
2.50 
2.24 
2.05 
1.83 
1.65 
1.65 
1.66 


4.28 
3.56 
3.17 
2.90 
2.71 
2.37 
2.21 
1.96 
2.04 


3,97 


$50,000 to $100,000 


3.23 


$100,000 to $250,000 

$250,000 to .$500,000 


2.83 
2.57 


$500,000 to $1,000,000 

$1,000,000 to .$5.000,000. 

$5,000,000 to $10,000,000 

$!0,000,Ono to $50,000,000 

$50,000,000 and over 


2.38 
2.10 
1.93 
1.80 
1.85 











• Averages of annual ratios. 
Source: Statistics of Income. 



In order to synthesize the quantitative aspects of working capital 
with the qualitative, the 1926-36 averages of the current ratio and of 
the sales to current assets ratio, by industry groups, are set side by 
side : 





Average of 1926-36 
annual- 


Industry 


Average of 1926-36 
annual- 


Industry 


Current 
ratio 


Current 

assets 

turn-over 


Current 
ratio 


Current 

assets 

turn -over 


Total manufacturing 


3.21 
3.09 
3.01 


2.28 
3.58 
2.44 


Lumber 


2.22 
3.21 
4. .17 


1.66 


Food 


Stoop 


1.97 


Textiles 


Metals 


1.92 









The strong position of the food group and the weak position of the 
lumber division are apparent at first glance. The former has a sizable 
proportion of working funds and the liighest turn-over; the latter not 
only has the smallest relative amount of working capital, but also the 
slowest turn-over of current assets by sales. Metal's relatively low 
turn-over is compensated for by the quantity of its working capital. 

The following tabulation brings out temporal comparisons in these 
two ratios for total manufacturing, over the period 1926-36: 





1926 


1927 


1928 


1929 


1930 


1931 


1932 


1933 


1934 


1935 


1936 


Total manufacturing: 

Current ratio 

Current asseti turn-over 


3.38 
2.46 


3.31 
2.50 


3.41 
2.53 


3.51 
2.66 


3.48 
,2.42 


3.37 
2.04 


3.12 
1.68 


3.13 
1.81 


2.78 
2.08 


2.89 
2.34 


2.95 
2,56 



" Cf. Schluter, Credit Analysis, veho writes (p. 256): "According to statistical evidence, a rapid rate of 
uirn-over is usually accompanied by a smaller increment of profit for each turn-over than is a slower rate. 
This proposiiion must be regarded as a fundamental law, because, otherwise, all business capital would 
flow to tlie industries and enterprises in which the tiu-n-over rate was high." 



CONCENTRATION OF ECONOMIC POWER 



89 



Parallel downward movements of these ratios are generally consid- 
ered a bad omen; parallel incf eases, a strengthened, position; and 
counteracting movements, a holding of position. There was a modest 
strengthening of position between 1926 and 1930, but a sharp break 
came the next year and continued into 1932; quantity and turn-over 
decreased concurreiltly. The subsequent further decline of the cur- 
rent position was counteracted, perhaps no more than in part, by the 
increased turn-over. On the basis of the 1926-29 average standings 
of these ratios, American manufacturing corporations had not, by 1936, 
fuUy recouped the working capital losses caused by the depression; 
the turn-over ratio had risen back to the 1926-29 level, but the current 
ratio was still under its earlier standing.^^ 

A comparison of these two ratios for all manufacturing concerns 
over the period 1931-36, classified by asset-size class (I is to $50,000, 
IX is $50,000,000 and over), follows: 





I 


11 


III 


IV 


V 


VI 


VII 


VIII 


IX 


Total manufacturing: 
Current ratio 


1.41 
3.97 


1.79 
3.23 


2.04 
2.83 


2.35 
2.57 


2.60 
2.38 


3.15 
2.10 


3.62 
1.93 


3.60 
1.80 


3 46 


Current assets turn-over 


1 86 







The counteracting tendencies are what one would normally expect — 
the higher current ratios are associated with lower turn-overs of cur- 
rent assets, and vice versa. It is difficult to draw conclusions con- 
cerning any interclass differences there may be in the strength of the 
general working capital position, but it may be observed that the 
product of these two ratios (a figure equivalent to'the current liabilities 
turn-over) rises from the smallest amount class to the seventh, ajid 
then falls to the largest asset-size group. 

The sales to current assets ratio gives an over-all view of working 
capital turn-over. It is desirable, however, to supplement this picture 
with analysis of the turn-over characteristics of particular segments of 
working capital. Important segments, in this respect, are inventory 
and receivables. Their turn-over characteristics are the subject of 
the immediately following paragraphs. 

Tables 44 and 45 present sales-to-inventory ratios corresponding 
to the current assets turn -over figures contained in tables 42 and 43. 
Moreover, the picture portrayed by the two different turn-overs are 
similar. Hence many of the remarks concerning tables 42 and 43 
apply also to tables 44 and 45. The food group has distinctly the 
highest inventory turn-over, 7.1 times. Lumber is again low with a 
turn-over of 3.3, while the other subgroups are modestly below the 
total manufacturing level of 4.9 The inventory turn-over displays 
considerable vitality over the period. Textiles actually recorded ail 
increase due to a relatively greater fall in inventory, and all the indus- 
trial groups except food and metals had more than regained their 
1926-29 level by 1936. The asset size break-down in table 45 presents 
the familiar regressive pattern: A decline in the inventory turn-over 
with increasing asset size, from 10.5 in the smallest class to 3.84 in the 
$10,000,000 to $50,000,000 bracket. All size groups shared in the 

'2 It is conceivable that this shift in the worV-ing capital position effected daring the depression consti- 
tutes a more or less permanent change in the financial structure of American manufacturing enterprises. 



90 



CONCENTRATION OF ECONOMIC POWER 



1934-36 rise in the tum^over of inventories due to a more marked 
increase in sales than in inventory. 

Table 44. — Ratio of sales to inventory for total manufacturing and 5 subgroups, 

1926-36 



Year 


Total man- 
ufarturing 


Food 


Textiles 


Lumber 


Stone 


Metals 


1926 


4.87 
5.13 
5.36 
5.49 
5.17 
4.60 
3.95 
4.00 
4.69 
5.24 
5.33 
5.21 
4.43 
5.09 
4.90 


7.73 
7.46 
7.40 
7.45 
7.62 
7.45 
6.57 
6.01 
6.46 
7.20 
6.73 
7.51 
6.91 
6.80 
7.10 


4.31 
4.11 
4.13 
4.49 
4.68 
5.18 
4.79 
4.13 
4.71 
5.08 
5.23 
4.26 
4.69 
5.01 
4.62 


3.82 
3.64 
3.86 
3.81 
3.00 
2.81 
2.33 
2.59 
3.08 
3.56 
4.27 
3.78 
2.68 
3.63 
3.34 


5.20 
4.87 
5.10 
4.88 
4.16 
3.6Q 
2.87 
3.20 
3.64 
4.12 
5.07 
5.01 
3.48 
4.28 
4.26 


4.44 


1927 


4.72 


1928 -- 


5.32 


1929 


5.57 


1930 


4.42 


1931 -. 


3.56 


1932 


2.44 


1933 


2.97 


1934 - 


3.72 


1935 


4.36 


1936 


4.68 


1926-29 1 .-- 


5.01 


1930-33 • 


3.35 


1934-36 1 - 


4.25 


1926-30 ' -. 


4.20 







' Averages ofannual ratios. 
Source: Statistics of Income. 



Table 45. 



-Ratio of sales to inventory for total manufacturing classified by asset 
size, 1931-36 



Asset classes 


1931 


1932 


1933 


1934 


1935 


1936 


1931-331 


1934-361 


1931-36' 


to .150,000 


10.44 
7.70 
6.21 
5.28 
4.79 
4.13 
3.82 
4.06 
4.50 


9.03 
6.64 
5.26 
4.51 
3.95 
3.49 
3,31 
3.29 
3.94 


8.99 
6.60 
5.35 

4.54 
4.07 
3.58 
3.34 
3.17 
4.10 


10.89 
8.02 
6.57 
5.69 
5. 17 
4.38 
4.28 
3.80 
4. .37 


11.44 
8.73 
7.19 
6.20 
5.56 
4,98 
4.66 
4.37 
4.96 


11.94 
9.29 
7.68 
6.59 
6.04 
5.18 
4.75 
4.31 
4.93 


9.48 
6.98 
5.61 
4.78 
4.27 
3.74 
3.49 
3.51 
4.18 


11.42 
8.68 
7.12 
6.16 
5.59 
4.85 
4.57 
4.16 
4.75 


10.45 


$50,000 to .$100,000 


7.83 


$100,000 to $250,000 


6.36 


$250,000 to $500,000 


5.47 


$500,000 to $1 ,000,000 

$1,000,000 to $5,000,000.- 

$5,000,000 to $10,000,000. 

$10,000,000 to $50,000,000 

$50,000,000 and over 


4.93 
4.29 
4.03 
3.84 
4.47 



1 Averages of annual ratios. 
Source: Statistics of Income. 

The salcs-to-receivables ratios presented in tabic 46 give an indica- 
tion of changes in the volume of credit business done or in the duration 
of credits extended by these manufacturing corporatioiis over the 
years 1926-36.'^ Receivables include not only accounts receivable 
(net), but also notes receivable, which may comprise certain assets 
not arising out of sales such as stock subscriptions or loans to officers 
and employees. If we assume such nonoperating items are relatively 
small, then a high ratio means a relatively small amount of credit 
sales, or a short credit period, and vice versa. Relatively speaking, 
the food companies do practically a cash business. Their receivables 
turn-over of 11 to 1 not only heads the list, but is almost double that 
of the total manufacturing average of 6.14. Lumber has the largest 
volume of receivables, relative to sales, with a turn-over of 4.07. Stone 
and metals are below the all-manufacturers level, while textiles are 
second high with a turn-over of 7.40. The proportion of credit sales 
swelled during the depression, the receivables turn-over for total man- 
ufacturing declining from a 1929 high of 7.23 to a 1932 low of 4.42. 

" Unfortunately, Statistics of Income tabulations do not permit an asset size break-down of this ratio. 



CONCENTRATION OF ECONOMIC POWER 



91 



Eleven-year highs in the turn-over (i. e. lows in credit sales) were 
recorded in 1936 by total manufacturing, textiles, lumber, and stone. 
Such a result could only follow from a relatively large volume of total 
sales, or a relatively small volume of credit sales, or the combined 
action of both forces. The dollar figures reveal that total sales (the 
numerator of the ratio) were the active element, receivables increasing 
less markedly. 

Table 46. — Ratio of sales to receivables for total manufacturing and 5 subgroups, 

1926-36 



Year 


Total man- 
ufacturing 


Food 


Te.xtiles 


Lumber 


Stone 


Metals 


1926 

1927 

1928 


6.99 
6.81 
6.77 
7.23 
6.61 
5.30 
4.42 
4.78 
5.22 
6.19 
7.26 
6.95 
5.28 
6.22 
6.14 


13.23 
12.36 
12.24 
11.68 
10.58 
9.92 
8.61 
8.80 
9.60 
10.93 
11.94 
12.38 
9.48 
10.82 
10.90 


7.19 
6.95 
6.89 
6.68 
7.28 
7.54 
6.85 
7.53 
7.98 
8.28 
8.21 
6.93 
7.30 
8.16 
7.40 


4.82 
4.82 
4.46 
4.33 
3.89 
3.40 
2.41 
3.10 
3.61 
4.42 
5.47 
4.61 
3.20 
4.50 
4.07 


6.48 
6.32 
5.93 
6.43 
5.96 
5.19 
4.12 
4.39 
5.10 
5.11 
7.07 
6.29 
4.92 
5.76 
5.65 


6.10 
6.17 
5.75 


1929 

1930 -.. 


7.21 
5.49 


1931 

1932 . 

1933 . 


4.41 
3.08 
3.86 


1934.... 

1935...- 

1936 _ 


4.44 
5.83 
6.70 


1926-291 .. 


6.31 


1930-33 1 

1934-361 


4.21 
5.66 


1926-36'. 


5.37 



1 Average of annual ratios. 
Source: Statistics of Income. 

The inventory-to-receivables ratio' supplements the working-capital- 
turn-over ratio inasmuch as it indicates the composition of the working 
capital. Its tr^nd is influenced by the fact that there tends to be more 
cash sqlling in periods of rising prices (sellers' market) and more credit 
sales when prices fall (i. e. in buyers' market). Table 47 presents the 
ratio of inventories to receivables, and discloses a remarkable con- 
stancy temporally as well as spatially.^'* Inventories are in every case 
somewhat in excess of receivables, in textiles more so (1.61) and in 
lumber less so (1.21) on the average over the 11 years. If we con- 
sider funds tied up in receivables one step nearer cash than those 
invested in inventory, an increase in the inventory-to-receivables ratio 
would be a favorable sign in periods of business revival,'^ and a decrease 
a favorable sign toward the end of a prosperity period. What actually 
happened, on the basis of the ratios in table 47? From 1929 to 1932 
a fallins: ratio, under the foregoing interpretation, would be a "good" 
sign: The ratio actually fell for total manufacturing, foods, and metals, 
inventory falling more sharply than receivables. Textiles' rising ratio, 
as well as that for lumber, was arrested in 1931. Stone's ratio proved 
quite perverse: Falhng from 1930 to 1931, it rose again to its former 
high level the next year and did not fall definitely until 1933, several 
years "too late." In the recovery years of 1934-36 a rising ratio would 
generally be desired: Such was the case for total manufacturing, food, 
lumber, and metals, receivables remaining relatively constant in the 
face of increasing inventories. Textiles' ratio fell rather persistently 
after 1933 since receivables increased faster than inventories. The 

'< Unfortunately, Statistics of Income tabulations do not permit an asset size break-down of this ratio. 
1' Because one is thereby building up inventories foi- presumably higher prices in a sellers' market. 



92 



CONCENTRATION OF ECONOMIC POWER 



perversity of stone's ratio continued: An "unwanted" fall from 1934 
to 1935 was followed by the "desired" rise the next year. It should 
be pointed out again, however, that too much reliance should not be 
placed on slight movements of this ratio, since both the numerator 
and denominator are point-of-time rather than average-over-a-year 
figures. 

Table 47. — Ratio of inventory to receivables for total manufacturing and five 

subgroups, 1926-S6 



Year 


Total man- 
ufacturing 


Food 


Textiles 


Lumber 


Stone 


Metals 


1926 


Percent 
143.4 
132.8 
126.4 
131.8 
127.8 
116. 1 
111.7 
119.5 
111.2 
118.0 
136.1 
133.6 
118. 6 
121.8 
124.9 


Percent 
171.2 
165.6 
166.3 
166.8 
139.0 
133.1 
131.1 
146.3 
148.6 
161.8 
177.3 
164.7 
137.4 
169.2 
163.3 


Percent 
166.9 
169.0 
167.0 
148.8 
166.7 
146.6 
143.1 
182.6 
169.6 
163.2 
166.8 
162.9 
166.7 
163.2 
160.7 


Percent 
126,3 
132.4 
115.4 
113.8 
130.0 
121.2 
103.4 
119.9 
117.6 
124.0 
128.2 
122.0 
118.6 
123.2 
121.1 


Percerd 
124.7 
129.8 
116.2 
131.8 
143.4 
140.7 
143.4 
137.4 
140.0 
123.8 
139.3 
125.6 
141.2 
134.4 
133.7 


Percent 
137.5 


1927 .- 


130.8 


1928 


108.2 


1929 


129.4 


1930 


124.0 


1931 


124.0 


1932 _ 

1933 


126.3 
130.2 


1934 , 


119.4 


1935. 


133.7 


1936 


143.1 


1926-29 


126.6 


1930-33 1 


126.1 


1934-361 


132.1 


1926-361 


127.9 







1 Average of annual ratios. 
Source: Statistics of Income. 

Large Manufacturing Corporations. 

One of the chief differences between the ratio of inventory to 
receivables for the Standard Statistics com.posite of 400 large cor- 
porations (see table 48) and the Statistics of Incom.e tabulation of all 
reporting corporations, is that the form.er is decidedly larger than the 
latter. Considering all 400 com.panies in the former case and total 
m.anufacturers in the latter, the respective ratios of inventory to re- 
ceivables are 230 percent and 125 percent, on the average over the 
respective periods covered by the data. Moreover, the trends ex- 
hibited by the two sets of data differ. The ratio for the 400 large 
corporations rises from, an average standing of 196 percent in the 
prosperity years 1927-29 to 223 in the depression period 1930-33 and 
then continues the rise to 255 percent in the recovery period 1934-38. 
In the Statistics of Incom.e tabulation for total m.anufacturing, on the 
other hand, the trend was down from, 134 percent in the first period 
1926-29, to 119 percent in the second period 1930-33. The recovery 
years 1934-36 saw a rise in the Statistics of Incom.e ratio to 122 percent. 
On the basis of our previously enunciated principle concerning a 
desirable m.ovem.ent in this ratio with respect to the business cycle, it 
would seem, that the ratio for total m.anufacturing in Statistics of 
Incom.e exhibited the m.ore favorable trend. That is to say, in the 
period of depression the ratio for the Standard Statistics com.posite 
continued to increase, whereas that for the Statistics of Income 
universe actually recorded the "desired" decrease. For the recovery 
years at the end of the period covered by both sets of data, the ratios 
in each case rose, which is, according to our principle, desirable. An 
exam.ination of the ratios for each year covered by these two sets of 



CONCENTRATION OF ECONOMIC POWER 



93 



datu — space limitations preclude presentation of the annual tables — 
gives no cause for in^pugning the validity of the foregoing conclusions. 

Table 48. — Ratio of inventory to receivables for Standard Statistics composite of 4OO 
corporations, by industry and by periods 1927-29, 19S0-S3, 1934-38, Qnd 
1927-38. 



Industry 



Number 
companies 



1927-29 



1930-33 



1934-38 



1927-38 



Advertising, printing, and publishing 

Automobiles and trucks 

Automobile parts 

Automobile tires - -.. 

Beverages. _ 

Building and real estate 

Chemicals, fertilizers. 

Con t ainers 

Electric equipment and radio..- 

Food products 

Household products 

Leather shoes 

Machinery 

M edicine, drugs. 

Metals 

Miscellaneous securities 

Office and business equipment 

Oil producing and refining 

Paper and paper products 

Railroad equipment 

Shipping and shipbuilding 

Steel and iron 

Sugar producing and refining 

Textile and apparel 

Tobacco products.. 

Mainly manufacturing 

All other companies 

All companies 



365 
35 



400 



Percent 
65 
293 
173 
174 
241 
156 
139 
172 
153 
189 
135 
155 
93 
144 
273 
124 
88 
218 
210 
96 
64 
245 
162 
177 
604 



Percent 

80 
290 
185 
164 
434 
178 
197 
128 
188 
190 
203 
142 

89 
135 
415 
151 
112 
222 
201 
122 
101 
493 
204 
197 
708 



Percent 
115 
279 
184 
207 
271 
212 
239 
182 
235 
247 
271 
198 
123 
144 
428 
196 
112 
247 
205 
164 
79 
387 
374 
213 
917 



Percent 
91 
286 
182 
186 
318 
187 
200 
162 
199 
214 
214 
169 
104 
141 
385 
163 
106 
231 
205 
133 
83 
387 
264 
199 
769 



192 
278 



220 
274 



253 
276 



227 
276 



196 



223 



230 



Source: Standard Statistics. 

What industrial differences are there in the ratio for the Standard 
Statistics composite? A glance at table 48 reveals that'.four industrial 
groups have three tim,es as m.uch inventory as they have receivables. 
These industries are tobacco, which has more than seven times as 
m.uch working capita 1 invested in inventory as in receivables, steel and 
iron, m.etals, and beverages. At the other end of the scale are two 
industries with a smaller amount invested in inventory than in re- 
ceivables. The bottom, position goes^ to shipping and shipbuilding, 
but between that low of 83 percent a*nd the 100 percent representing 
parity between inventory and receivables, falls advertising, printing, 
and publishing. Slightly above the 100 percent mark are machinery 
and office equipm.ent. These differences in the inventory to receiv- 
ables ratio between the various industries are quite m.arked, in fact, 
m.uCh m.ore m.arked than indicated by the ratios calculated for the 
industrirl groups in Statistics of Incom.e. Of the five industrial 
subgroups of total manufacturing studied in the analysis of the 
Statistics of Incom.e data, the maxim.um range over the 1926-36 
period was from 161 percent in the case of textiles to 121 percent in the 
case of luml)er. 

The average ratio for all 400 companies of the Standard Statistics 
sam.ple increased over the entire period 1927-38. Fourteen of the 25 
industry groups followed the sam.e pattern. Six followed the Statistics 
of Income pattern which has a lower ratio in the depression period. 



94 CONCENTRATION OF ECONOMIC POWER 

Four pointed in the other direction by having a higher ratio in the 
depression period than in either of the other periods. One actually had 
a decreasing ratio over the entire period, autos and trucks. The ratio 
for the mainly nonmanufacturing companies was in the so-called 
favorable group, showing a decline from 1927-29 to 1930-33 and an 
increase from 1930-33 to 1934-38. 

1): 3): 4: * * 4: 4! 

This completes the discussion of working capital. No attempt has 
been m.ade to present an analysis thereof which would be helpful to 
business cycle analysts. It is our belief the data are not adequate for 
that purpose. However, the attempt has been made to give the reader 
a background picture of the am.ount of working capital possessed by 
manufacturing corporations and of the utilization which these com- 
panies m.ake of this revolving fund. Such a background may not only 
contribute to an understanding of the general financial structure of 
American industry, but also may provide a useful basis of reference for 
discussions concerning the financial characteristics of particular 
groups of American corporations. 



CHAPTER V 

FIXED CAPITAL OF AMERICAN MANUFACTURING 
CORPORATIONS 

The earnings experience of American manufacturing corporations 
was described briefly in 2 and 3 chapters. The fourth chapter took 
up their working capital position. In this chapter we will deal with 
the fixed capital position — treating first their sources of fixed capital; 
secondly, the uses made of this fixed capital; and, thirdly, expansion 
policies. 

Fixed capital — commonly referred to as the capital — of an enter- 
prise is of initial importance in the launching, and then in the opera- 
tion, of a business. Jts composition is indicative of the degree of 
equity maintained by the owners, and predictive of future control 
over the capital- invested in the enterprise. 

Concerning the source and nature of capital, it is important to 
know how much is borrowed and how much is owned; how much 
represents reinvested earnings and how much stockholders' invest- 
ments directty; and how much of the borrowing is short time and 
how much long time. In analyzing the uses and distribution of 
capital the aim is to ascertain the extent to which total capital in- 
vested in an enterprise covers fixed assets and current assets, respec- 
tively. Closely related to the uses and distribution of capital is a 
firm's expansion policies. The relation of plant expansion to volume 
of business is examined in a concluding section to this chapter. 

NATURE AND SOURCES OF FIXED CAPITAL 

In this section we are primarily interested in the relative proportions 
between owned and borrowed capital, between reinvested earnings 
and stockholders' investments directly, and between capital borrowed 
on long and short time. The information available on all manu- 
facturing corporations permits a general survey of all three aspects. 
The data on the 400 large companies make possible an analysis of the 
first and third points, while the available small corporations tabula- 
tions give some information on two other aspects of capital composi- 
tion, the relation of capital stock to surplus and of funded debt to 
capital stock. 

All Manufacturing Corporations. 

The basic data for all manufacturing corporations derived from 
Statistics of Income are presented in tables 49 and 50. The former 
comprises the 1926-36 industry ratios of net worth to total debt, 
surplus to net worth, and current debt to total debt, the latter presents 
asset size classifications of these three ratios for total manufacturing 
over the years 1931-36. This tabular scheme differs from that followed 
in the preceding chapter, when each working capital ratio was treated 

95 



gg CONCENTRATION OF ECONOMIC POWER 

separately. Combination analysis seems better adapted to the 
fixed capital position than to the working capital, although some use 
of it was nevertheless found helpful in the last section. 

The net worth to total debt ratio gives us the relative proportion 
between owned and borrowed capital. Net worth is the sum of 
preferred and common stock and surplus, while total debt is the sum 
of funded and current debt. Table 49 indicates net worth is about 
four times total debt for most manufacturing corporations, food's 
low average of 2.8 indicating a relatively heavy reliance on outside 
or borrowed capital and stone's high average of 4.8 implying relative 
independence from creditors. This ratio is relatively stable during 
the business cycle, but a surprising secular decline occurs in the food 
industry ratio, due to a declining equity in the face of a relatively 
stable total debt. 



CONCENTRATION OF ECONOMIC POWER 



97 



■^;0«0t» © OO CO oco?o o «:> M ooso oc^<© 

?: 

vr*c«t* CO ■* <o oioQeo t^ CO r- i--t-fo — ■ r-* ^ 

OoocOlfl OQCOiO t^ N r^ O CO «D b-. « *0 -^00*0 
»; CO N CO CO ^ ■ ^ 

Q, 

■goeooi OTt<io ooio ooo onus oosco 
u^ri'-^" od'«i<o t~oo ^hi^m oiow pScotd 

5cO N M f« ^ M 
_Qh 

'gOmcO 005-* OCC^ 0-H>^ 0^!0 0"*0> 
??o^i-HC« ^CC^' Op^wi C^'w— J o«OCD ^WCC) 

iC3wo a>m"5 Nc^t-. ^eo«5 «pmt(< o«v 
S)^ a -^ n 9 >a 

_^ 

■gO^OO O »0 O O'^J'O OOSr-t o r* W3 ocoos 

^jof-^oJ 060600 cooco id Q r^ ^ ^ r^ r^cic^i 
£:oaco»c -H c^i »o 10 CO 00 — « ^ b- 1-H CO •c »neoio 

<u CO CO CO CO o -^ 

_&, 

■g O •*" «3 O C4 00 O t^ »0 0*^2 O C^ 00 O ■^ •'^ 

XoirfN Ot~"<i i-^tDoi looioi oioiitD t-^ioei 
C«eo<o f5«ij<iS t»m>o o>c>)« t(<i?<u5 co-^ks 

£« N N N T»" Cd 

_C^ 

■gONO Ot^O OCO-* 0-«« 0"»"0! O0C-< 

Jjoo-HO r''*'3 -^'SB® odi^N Naj-si Mcooi 
gmcoS e<-i)<3 oN*^ osc^o lofSio «)W"5 
5« c< m 5) 'S" « 

_a< 

■gO'<J<t~ OCCt- OOON OCON O1-1OO OiJ'M 

^•^oic<i N^^ -^ r>^ t^ Q -rt) ^ o^^ t^^i^ 

j;«ftNCO ^-^C QNt>- WC40 lOOXO o>««o 

■goosco oe<i>- 0<000 OOOM o«oo oo>oo 

JJcooaro •*t*o6c^ krf <p »o oi irj o Qeceo cd N C4 
i; Q N U3 «5rt"3 C4^r* o c* 55 <S ci -^ *-ico-Tf< 

G* N ■* CO ^ 10 

_tt5 

pOrHM o«e^ oo5t~ ON"-* osco o<oo 

Xogi'^ wpioJ «oo-H aocooi "iNN* ocot^ 
5; -1 f) 10 ow>»« S'^^ oN«o 2**** Scctji 

_^ 

■gO-HOS c^t- ot^o oooos o«t>- o<o.«o 

S-iei-J oj-'f'o «5«>o .pwod ooofioo omq 

5t(< in tj< m ■* ■* 

_&; 

"g o o 00 o»ooo o •-< r^ o "^ •-* oc^»c ocoo 

J^a^oco t>^oc»i ifitat^ ooit-^ ooooi i>; w t^ 
J;0«'« i-icoio aoNt~ ^ec« >nm-^ -h ■»»" •* 

_Q^ 

■goojto Oi-im oN«o ot~^ oc^«o oooto 

JJoitdt^; oioo rj<c<i-J COC<-< Oi-HOi ■*«•«> 
J;qco»c ^^ CO »o -^ eo 00 t-i-^t^ iC co -^ m *!** »o 

aj ^ CO CO CO ^ WD 

_&; 

■^0000 o *c r^ oc^c^ 03-^ o-*-"* ocoio 

??o6w?r^ oioit-^ '^f' ^ CO 06 o »d QC^c^ oio6r>^ 
j;a5co»o i-h c^ lo »ocooo o ^ »>• ^co»o w co •«*< - 

ttj CO CO CO CO ^ ^ 

_a^ 

■goCOu^ 0^0 OCO-^ O N >0 0»OCO 0»0'* 

?*w5-«**o <do6t>^ (60 M cJ'-«*Q c^eiw o6o6eo 
Coscoco oc^»o ocooo ^ ■«*« 00 U5C0?0 coco«5 

oj CO CO CO CO lO ^ 

_&; 

gO'-^Tj* OfNW Ot>»00 0<OCS O Ir^ b* O "5 rH 

Socici ■*tdo tot^-* 0606— i «do<o >o»to 
fclQcoo coc^(0 ■«t< 64 00 ^ CO 00 eococo co co »o 

5^ CO CO CO "5 ■* 

a. 



■§55 

• • 03 O -w 

O o 1* o 



•s „'-L a) -' -2 



"o^ (fl •3^0! ■05'°° '35°' "325 

•abP •:3bo rskp -afeq -3 ^j o 



22-S 






^a5 
S a o 



5-0 5j 



8 So g a o 



' a a 
— V 
, at; 



S-^S ^^ 



3s 



oj ^ dJa *> 3 : 



2 a 2 ^ 

t^ iJ re S 



<s> 



42 .2 

■a TS « 

Is S 

"c!-. .a 

•w a) rn 

2(1 ■" 

£ £ 5? 



gg CONCENTRATION OF ECONOMIC POWER 

Confidence in the reliability of the next ratio, surplus and undivided 
profits to net worth, would be augmented were the surplus item a 
neater figure.^ The figures as they stand indicate that about a third 
of corporate manufacturing's owned capital is derived from or rep- 
resented by paid-in and earned surplus and undistributed earnings. 
The industry variations about this average are slight, metals running 
37 percent and stone and textiles 28 percent. The ratio rises in 
cyclical expansion due to an increase in surplus, and falls in contrac- 
tion, due to a decrease in surplus. The secular rise of the food group's 
ratio resulting from a marked decrease in net worth coupled with 
some retention of earnings, or write-ups, constitutes an exception. 

The final ratio, current debt to total debt, tells us what proportion 
of the borrowed capital is on short term. The relative amount of 
current debt (including both notes and accounts payable) fluctuates 
decidedly with the business cycle, perhaps more so than it would 
have done were it limited, as one would wish,^ to notes payable. 
The decline of this ratio in cyclical contraction is due largely to a 
falling off in current debt, funded debt declining less markedly. 
Similarly, the increase in this ratio during recovery is brought about 
by a itiarked swelling of current debt and a less pronounced rise in 
funded debt. Textiles and lumber have exceptionally high ratios, 
more than three-fourths and two-thirds respectively. Metals and" 
stone are low, having a funded debt almost equal to their current debt. 

With respect to the asset size classification (see table 50), the net 
worth to total debt and surplus to net worth ratios increase steadily 
as we pass from small to large companies; the ratio of current to 
total debt falls just as consistently. The progression is steep in the 
surplus to net worth ratio rising, in the case of the 1931-36 average 
for all manufacturing corporations, from a negative 63 percent to a 
positive 36 percent. The negative ratios in the two smallest size 
classes— to $50,000 and $50,000 to $100,000— mean that these 
companies had, in the aggregate, a deficit in place of a surplus. The 
surplus to net worth ratio becomes positive in the next size class — 
$100,000 to $250,000— indicating the transition from deficit to sur- 
plus. Pronounced progression occurs in the net worth to total debt 
figures, from 1.2 to 4.2. The regression in the current to total debt 
ratio is also decisive, from 86 to 48 percent. The larger companies, 
therefore, have a relatively high proportion of surplus and of owned 
capital, and a relatively low proportion of current debt. 

' "Surplus and Undivided Profits" in Statistics of Income tabulations includes all items of surplus, 
such as donated, paid-in, earned or unearned surplus, capital surplus, surplus by appreciation, surplus 
reserves, premiums on capital stock, etc. 

' It would have been better if we could have excluded accounts payable from borrowed capital. It was 
not possible to do that, however, and still show the asset size break-down. 



CONCENTRATION OF ECONOMIC POWER 



99 



Table 50. — Ratios of net worth to total debt,^ surplus to net worth, and current 
debt to total debt, for total manufacturing classified by asset size, 1931-36 



Asset class and ratio 



1933 



1934 



1935 



1936 



1931- 
33 J 



1934- 
36 > 



1931- 
36' 



to $50,000: 

Net worth to total debt i 

Surplus to net worth 

Current debt to total debt '. 

$50,000 to $100,000: 

Net worth to total debt ' 

Surplus to net worth 

Current debt to total debt '. 

$100,000 to $250,000: 

Net worth to total debt i 

Surplus to net worth 

Current debt to total debt '. 

$250,000 to $500,000: 

Net worth to total debt i 

Surplus to net worth 

Current debt to total debt '. 

$600,000 to SI, 000.000: 

Net worth to total debt ' 

Surplus to net worth 

Current debt to total debt '. 

$1,000,000 to $5,000,000: 

Net worth to total debt ' 

Surplus to net worth 

Current debt to total debt '. 

$5,000,000 to $10,000,000; 

Net worth to total debt ' 

Surplus to net worth 

Current debt to total debt '. 

$10,000,000 to $50,000,000: 

Net worth to total debt ' 

Surplus to net worth. 

Current debt to total debt '. 

$50,000,000 and over: 

Net worth to total debt i 

Surplus to net worth 

Current debt to total debt ' 



Per- 
cent 
141.0 
-45.2 

87.7 

193.0 
-3.1 

82.2 

246.0 
9.5 
78.6 

295.0 
20.4 
75.2 

378.0 
26.8 
72.3 

446. 
30.7 
61.8 

463.0 
35.6 
48.2 

469.0 
31.5 
44.9 

437.0 
37,7 
39.7 



Per- 
cent 
131.0 
-62.3 
86.3 

201.0 
-9.9 
79.6 

249.0 

3.9 

76.5 

323.0 
16.6 
70.9 

389.0 
23.8 
68.6 

452.0 
26.9 
58.5 

450.0 
30.0 
44.2 

467. 
27.8 
43.5 

432.0 
36.4 
41.9 



Per- 
cent 
128.0 
-66.4 
86.6 

192.0 
-9.6 
80.9 

246.0 
6.7 
76.4 

317.0 
19.3 
73.2 

356. 
24.7 
68.7 

447.0 
28.8 
59.6 

418.0 
31.6 
46.2 

444.0 
31.6 
47.0 

438.0 
35.1 
44.1 



Per- 
cent 
113.0 

-68.7 
86.1 

190.0 
-8.1 
80.9 

234.0 
5.7 

77.7 

286.0 
18.0 
74 9 

319.0 
24.1 
72.0 

374. 
29.5 
68.0 

361.0 
34.3 
57.6 

391.0 
33.8 
67.3 

392.0 
34.2 
54.9 



Per- 
cent 
106.0 
-68.4 
84.6 

181.0 
-6.2 
81.1 

225.0 
10.0 
78.3 

278.0 
18.4 
75.3 

298.0 
26.2 
72.4 

365.0 
31.5 
67.4 

355.0 
36.4 
.56.0 

361.0 
36.3 
51.9 

376.0 
35.3 
5:!. 4 



Per- 
cent 
101.0 
-65.5 
85.4 

162.0 
-4.6 



204.0 
13.3 
79.0 

247.0 
22.5 
74.6 

277.0 
28.5 
72.4 

360.0 
35.1 
68.5 

358.0 
38.5 
55.6 

407.0 
37.6 
56.1 

375.0 
36.7 
54.8 



Per- 
cent 
133.0 
-58.0 
86.8 

195.0 

-7.5 
80.9 

247.0 
6.7 
77.2 

312.0 
18.8 
73.1 

374.0 
25.1 
69.9 

448.0 
28.8 
60.0 

444.0 
32.4 
46.2 

460.0 
30.3 
45.1 

436.0 
36.4 
41.9 



Per- 
cent 
107.0 
-67.6 
85.4 

178.0 
-6.3 
80.9 

221.0 
9.7 
78.3 

270.0 
19.6 
74.9 

298.0 
26.3 
72.3 

366.0 
32.0 
68.0 

358.0 
36.4 
56.4 

386.0 
35.9 
66.1 

381.0 
35.4 
64.0 



Per- 
cent 
120.0 
-62. 8 
86.1 

187. 
-6.9 
80.9 

234. a 

77.8 

291.0 
19.2 
74.0 

336.0 
25.7 
71.1 

407. 
30.4 
64.0 

401.0 
34.4 
61.3 

423.0 
33.1 
50.1 

408.0 
35.9 
48.0 



' Current and funded debt, exclusive of accrued expenses. 
2 Averages of annual ratios. 

Source: Statistics of Income. 

So much for the general magnitudes of the sources of fixed capital. 
Let us now examine the three ratios in combination, industry by 
industry; and size class by size class. Arbitrarily construing "favor- 
able" in terms of relatively large surplus and independence from out- 
side owners and from short-term debt, we shall attempt to disclose 
favorable and unfavorable developments. For example, a decline in 
the net worth to total debt ratio is made worse if surplus to net worth 
also falls, since outside borrowing is not only larger but also the rate of 
accumulated earnings or paid-in surplus is shrinking. If, further, an 
increasing current debt to total debt ratio is also found, the prognosis 
becomes even more unfavorable because the proportion of current 
debt is increasing at the same time that the proportion of totj^l debt is 
increasing. Oftentimes, of course, trends in the different ratios would 
tend to compensate for each other, and it would be difficult to say that 
the development was either favorable or unfavorable. The following 
tabular summary, derived from table 49, is an attempt to draw such 
general conclusions. The resulting appraisals are from a development 
rather than static viewpoint, and should not be taken too literally. 
The remarks are concerned more with possible shifts in capital's com- 
position, are on a relative basis, and are subject to qualifications. 



259845— 40— No. 15r- 



100 



CONCENTRATION OF ECONOMIC POWER 





1926-29 


1929-33 


1933-36 


Remarks 


Total manufacturing: 
Net worth to total 

debt. 
Surplus to net 

worth. 


Stable. -- 

Rising.. 


Stable 

Declining 

.. do 


j 

Declining 

Rising 

do 


The proportion of equity in the 
total capital is barely holding its 
own, earned capital is swelling 
from retained profits (or write- 
ups), and current debt is falling 

os; 


total debt. 
Appraisal 


Gaining 

Stable 

Rising 

Declining 

Gaining 

Declining 

Rising 

Declining 


Holding own. 

Declining 

Rising.. 

Declining 


Spotty.- 

Declining 

Rising 

do 


Foods: 

Net worth to total 

debt. 
Surplus to net 
worth. 


Borrowed capital is looming more 
important than owned capital, 
within the equity there is a 
definite shift to earned capital, 
and current debt is decreasing 
relative to total debt. 


total debt. 
Appraisal 


Holding own - 

Rising.- 

Declining 

...do 


Spotty 

Declining 

Rising-. 

Declining 

Holding own. 

Declining 

Rising 

do 

Holding own - 

Declining 

Rising 

. -.do . .. 


Textiles: 

Net worth to total 

debt. 
Surplus to net 

worth. 


Owned capital is losing ground to 
borrowings, there is some shift 
to earned capital, and current 
debt is on the way out. 


total debt. 
Appraisal .. 


Holding own. 

Declining 

Rising.. 

Declining 

Gaining. 

Declining 

Rising. 

Declining 


Holding own. 

Stable. 

Declining 

do 

Holding own. 

Stable 

Declining 

-do . ... 


Lumber: 

Net worth to total 

debt. 
Surplus to net 

worth. 
Current debt to 

total debt. 
Appraisal 


Total equity is giving way to bor- 
rowed capital, stockholdings are 
losing to earned capital, and 
current debt is falling. 


Stone-clay: 

Net worth to total 

debt. 
Surplus to net 

worth. 
Current debt to 


Borrowing capital is becoming 
more important than owned, 
stock is giving way to earned 
capital, and short-term debt to 


total debt. 
Appraisal 


Holding own. 

Rising 

....do.. 

Declining 

Gaining 


Holding own - 
Declining 

do 

do 

Losing 


Spotty - 

Declining 

Rising.. 

do 

Spotty 


long-term debt. 


Metals: 

Net worth to total 

debt. 
Surplus to net 

worth. 
Current debt to 

total debt. 
Appraisal 


Within total capital there is a 
shift to borrowed capital, within 
total equity to earned capital, 
and within total debt to funded 
obligations. 







Differences between industry groups are not clearly marked by 
these appraisals, probably because the judgments themselves are not 
sufficiently refined. From the rough appraisals here made, however, a 
favorable development in the capital position of the lumber industry is 
brought out. The other groups just about held their own position 
during the entire period, although metals definitely lost ground during 
the contraction phase of the cycle. Most groups gave evidence of a 
trend toward borrowed capital, and of a shift within total equity 
toward earned capital, that is, paid in and earned surplus and undis- 
tributed earnings. The figures are not very trustworthy for this type 
of inference because the surplus item is the resting place of write-ups 
and write-downs, whose amount and timing are generally unknown. 
However, the persistence of the shift to earned capital (surplus) on 
the one hand, and to borrowed capital (total debt) on the other hand, 
can only mean that equity shares — common and preferred stock — are 
becoming relatively less important (or, at least are carried on the 
books at lower valuations). Since surplus is a part of stockholders' 
equity, the increase in surplus may compensate for the decrease in 
stocks outstanding and leave the total stockholders' equity unchanged. 
More precise answers to these questions must await more rigorous 
data. In any case, the developmental aspects of the fixed capital 



CONCENTRATION OF ECONOMIC POWER 



101 



supply should not be turned into an appraisal of the absolute standing 
of the different industries. An industry with a so-called unfavorable 
trend in its capital supply may still be in a stronger position than an- 
other industry with a so-called favorable trend. 

The following tabular summary, derived from table 50, carries out a 
similar analysis of the asset size classification of these three ratios for 
total manufacturing over the period 1931-36. The trend of the ratio 
over the entire period is labeled as up, down, or even. The asset size 
classes, from small to large, are indicated by the numerals I through 
IX. The appraisal is, again^ merely a conjecture, and the following 
remarks only possibilities: 



Ratio 


I 


II 


Ill 


IV 


V 


VI 


VII 


VIII 


IX 


"Net worth to total 

debt. 
Surplus to net 

worth. 
Current debt to 

total debt. 


Down.. 
...do.... 
...do.... 


Down.. 

Up 

Even.. 


Down.. 

Up 

...do-... 


Down.. 
Up..... 
...do.... 


Down.. 

Up 

...do...- 


Down- 
Up 

...do.... 


Down.. 

Up 

...do.... 


Down.. 

Up 

...do.... 


Down. 
Do. 
Up. 


Appraisal 


Holding own 


Spotty 


Losing 



This summary, although possibly accurate so far as the develop- 
mental aspects of capital supply are concerned, may nevertheless be 
misleading because the absolute standings of the different-size classes 
are not taken into account. For example, the smallest-size classes 
seem to have done the best job of maintaining their capital supply 
during the years 1931-36. When it is realized that the surplus to 
net worth ratio of these smaller firms is actually in the red, and their 
net worth to total debt ratio definitely smaller than that for the large 
companies, a different light is cast upon the above-detailed movements 
in these ratios. The one trend in the above summary wliich seems 
most significant is that the largest corporations ($50,000,000 and 
over) seem to be losing ground, inasmuch as they show shifts from 
equity, from retained earnings, and to current debt. Moreover, the 
absolute standing of their ratios is no better than that of the VI, 
VII, and VIII size classes (covering assets of $1,000,000 to 
$50,000,000). 3 

One important factor which has been omitted from all this appraisal 
making is the magnitude of the upward or downward movement. 
Whether the movement over a given-time period was up or down was 
determined by inspection. If the ratio for the second half of the 
period seemed about the same as that for the first, the movement 
was characterized as "stable" or "even." Whether it fell greatly or 
only slightly, however, the record would show "declining" or "down." 
Obviousl}^, a rigorous analysis would have to give some weight to the 
quantitative aspects of the "down" or "up." This weighting of the 
different ratios is not feasible ih the present instance. The ratios are 
not sufficiently reliable, and it is not so easy to decide the relative 
importance of the different ratios. Some of the more particular 
factors governing the requirements of each firm have to be taken into 
account. 



• This is not necessarily inconsistent with the profits study of chapter 2. The largest asset size group 
was not usually the most profitable; the VI, VII, and VIII classes generally held this distinction. 



102 



CONCENTRATION OF ECONOMIC PQWER 



The main value of the present discussion — it must be growing 
increasingly evident to the reader — lies not so much in the appraisals 
of these industry groups as in the general background of relative 
magnitudes of the various components of capital supply. The general 
proportions for all manufacturing corporations in the aggregate, of 
owned capital to borrowed capital, surplus to owned capital, and 
current debt to total debt, are probably reUably pictured by the 
figures set forth above. 

Large Manufacturing Corporations. 

Asset size and industrial differences in these three capital ratios 
have already been indicated, m a general fashion, by the foregoing 
data on all manufacturing corporations. Data on 400 large corpora- 
tions from the Standard Statistics composite covering the years 
1927-38 permit an identical-sample analysis of 2 of these ratios: 
Net worth to total debt (table 51), and current debt to total debt 
(table 52). The ratios in the tables are averages of the annual ratios 
for the periods 1927-29, 1930-33, 1934-38, and 1927-38. 

The fact that the 1927-38 ratio of net worth to total debt for the 
Standard Statistics composite of 400 corporations is somewhat higher 
than that for the total manufacturing group covered in Statistics of 
Income is not surprising. (See table 51.) The difference between 4.5 
recorded by the Standard Statistics sample and 3.9 recorded by 
Statistics of Income is probably to be explained largely by the fact 
that the corporations in the former sample are considerably larger in 
size than those of the latter universe. The net worth to total debt 
ratio for total manufacturing in Statistics of Income covering the 
period 1931-36 shows that the ratio of net worth to total debt rises 
from 1.2 in the case of the smallest-asset class (0 to $50,000) to 4.1 
in the case of the largest-asset class ($50,000,000 and over). In fact, 
all of the corporations in the total manufacturing group in Statistics 
of Income with assets over $1,000,000 have a net worth to total debt 
ratio of 4.0 or more. The corresponding ratio for the Standard 
Statistics composite is only slightly above that figure. 

Table 51.- — Ratio of net worth to total debt^ for Standard Statistics composite of 
400 corporations, by industry and by periods, 1927-29, 1930-3S, 1934-38, and 
1927-38 



Industry 



Number 








of com- 


1927-29 


1930-33 


1934-38 


panies 










Percent 


Percent 


Percent 


7 


7.7 


10.1 


9.6 


13 


5.1 


8.3 


5.6 


27 


5.5 


9.0 


5.8 


10 


1.7 


1.8 


1.6 


4 


6.4 


6.7 


3.4 


22 


5.1 


5.1 


5.0 


10 


11.3 


15.9 


10.6 


3 


13.7 


17.5 


10.1 


10 


5.7 


13.2 


9.3 


27 


2.4 


3.1 


2.9 


16 


5 6 


5.8 


6.7 


7 


7.0 


13.5 


7.6 


25 


6.4 


7.6 


6.1 


6 


7.1 


8.7 


6.0 


21 


4.2 


5.6 


6.4 


24 


4.0 


6.3 


5.6 


9 


3.6 


4.9 


3.3 


25 


4.2 


4.3 


4.1 



Advertising, printing, and publishing. 

Automobiles and trucks 

Automobile parts 

Automobile tires 

Beverages. 

Buildinfc and real estate 

ChemiPils, fertilizers 

Containers 

Elpctrical equipment and radio. 

Food products 

Household products 

Leather shoes 

Machinery 

Medicine, drugs _.. 

Metals 

Miscellaneous securities 

Office and business equipment 

Oil producing and efining 



> Current liabilities including accrued esi>enses plus funded debt. 
Source: Standard Statistics. 



Percent 
9.3 
6.4 
6.8 
1.7 
5.2 
5.1 
12.5 
13.5 
9.7 
2.8 
6.1 
9.4 
6.7 
7.2 
5.6 
5.1 
3.9 
4.2 



CONCENTRATION OF ECONOMIC POWER 



103 



Table 51. — Ratio of net' worth to total debt for Standard Statistics composite of 
400 corporations, by industry and hy periods, 1927-29, 19S0-SS, 1934-38, and 
1927-38— Continued 



Industry 



Number 
of com- 
panies 



1927-29 



1930-33 



1934-38 



1927-38 



Paper and paper products — 

Railroad equipment -. 

Shipping and shipbuilding... 

Steel and iron 

Sugar producing and refining. 

Textiles and apparel 

Tobacco products 

Mainly manufacturing 

All other companies 

All companies 



Percent 
3 

10 
7 

17 
8 

30 

16 



Percent 
2.1 
6.2 
2.8 
3.3 
3.9 
6.0 
5.8 



Percent 
2.4 
5.1 
2.5 
4.9 
8.3 
12.1 



Percent 
2.2 
5.1 
2.9 
4.1 
12.1 
5.8 
6.2 



365 
35 



4.1 
3.1 



6.1 
3.0 



4.6 
3.1 



Percent 
2.2 
5.3 
2.7 
4.2 
8.8 
7.9 
7.3 



4.6 
3.1 



400 



4.0 



4.9 



4.5 



The trends over the respective periods covered by the two samples 
are approximately the same. The ratio for the 400 companies is 
lowest in the prosperity years 1927-29, and in the recovery years 
1934-38, and highest in the depression years 1930-33 due to a de- 
crease in total debt. The chief difference between the universe and 
the sample insofar as their trends are cpncerned lies in the fact that 
the universe fell relatively more in the recovery years. In the case 
of the Standard Statistics group, the ratio for the years 1934-38 is 
higher than for the years 1927-29, whereas, in the case of the total 
manufacturing category in Statistics of Income, the ratio of 3.4 for 
the years 1934-36 is less than the ratio of 4.0 for the years 1926-29. 
If, however, we had Statistics of Income data for the two additional 
years 1937 and 1938, this difference might be eliminated, or at least 
attenuated. 

Industrial variability is marked in the Standard Statistics sample. 
The highest ratios are reported by the container and the chemical 
and fertilizer manufacturers, the former having a ratio of 13.5 and 
the latter of 12.5 These ratios are in sharp contrast to that recorded 
by the automobile-tire manufacturers, namely, 1.7. This sharp in- 
dustrial variability is to be explained largely in the aversion which 
some corporations have against funded debt. Other industrial 
groups in the category of large net worth to total debt ratios are 
electrical equipment, 9.7; leather and shoes, 9.4; and advertising, 
printing, and publishing, 9.3. Other industrial groups falling in the 
lower category are paper products, 2.2; shipping and shipbuilding, 
2.7; and food^ products, 2.8. Considering the relatively stable in- 
come of the food producers, their relatively low ratio of net worth to 
total debt is not surprising. However, the relatively low ratio for 
the other industrial groups, that is, automobile tires, paper products 
and shipbuilders must be explained on other grounds. 

The trend of the ratio of net worth to total debt is up in the de- 
pression period due to a decrease in total debt, and down in the re- 
covery and prosperity periods when total debt is higher. This trend 
is observed in 18 of " the industrial groups. One industry, shipping 
and shipbuilding, constitutes an exception since it has the lowest ratio 
in the depression period due to a greater relative fall in net worth. 
Two other industries, railroad equipment and building supplies, are 
peculiar because their ratios declined over the entire period as result 



104 



CONCENTRATION OF ECONOMIC POWER 



of a decreasing net worth. Four other industries, household products^ 
metals, miscellaneous manufactures, and textiles and apparel, have 
a rising ratio over the period due to a declining total debt. The non- 
manufacturing group has a ratio not in line with that for all companies. 
It is slightly lower in the depression period than in the terminal 
periods, but the difference from 3.1 to 3.0 in this case is hardly large 
enough to merit drawing definite conclusions. 

The ratio of current liabilities to total debt tells that proportion of 
the total borrowed moneys of a corporation due within a relatively 
short time and, by subtracting, that proportion due in a relatively 
long time. This ratio for the Standard Statistics composite of 400 
corporations covering the period 1927-28, is shown in table 52. 

The smallness"of the current to total debt ratio for the Standard 
Statistics composite of 40C) corporations is brought out by table 52. 
The average ratio is 40 percent for all 400 companies over the entire 
period. The corresponding ratio for all manufacturing companies 
reporting in Statistics of Income is 58 percent. This difference is 
probably to be explained by differences in the size of the corporations 
covered by the two sets of data. The current debt to total debt 
ratio for total manufacturing in Statistics of Income decreases per- 
sistently as one passes from the small companies to the large com- 
panies. This would account for the relatively small ratio of current 
to total debt of the Standard Statistics sample composed of large- 
companies. The trends in the ratios for the two sets of data are 
roughly the same. In both cases they fall from the prosperity period 
to the depression period and then rise again in the recovery years, 
current debt being the more active variable. 

Table 52. — Ratio of current liabilities to total debt ' for Standard Statistics composite 
of 400 corporations, by industry and by periods 1927-29, 1930-33, 1934-38, and' 
1927-38 



Industry 


Number 
of com- 
panies 


1927-29 


1930-33 


1934-38 


1927-38 


Advertising, printing, and publishing ..- 


7 
13 
27 
10 

4 
22 
19 

3 
10 
27 
16 

7 
25 

5 
21 
24 

9 
25 

3 
10 

7 
17 

8 
30 
16 


Percent 
79 
85 
74 
27 
36 
38 
€0 
100 
74 
37 
47 
92 
72 
97 
42 
47 
41 
36 
20 
42 
24 
23 
43 
50 
44 


Percent 
78 
71 
61 
14 
63 
23 
58 
100 
79 
28 
30 
89 
48 
96 
52 
41 
34 
30 
17 
19 
14 

s? 

68 
38 


Percent 
87 
93 
83 
27 
63 
36 
65 
100 
85 
40 
58 
83 
69 
96 
48 
55 
37 
41 
27 
29 
20 
26 
88 
79 
52 


Percent 
8? 


Automobiles and trucks - 


84 


Automonile parts 


74 


Automobile tires . . 


23 


Beverages 


56 


Building and real estate - 


32 


Chemicals, fertilizers 


62 


Containers ' 


100 


Klectrical equipment and radio 


80 


Food products 


35 


Household products ." 


46 


Le'ither shoes ^ 


87 


Machinery ■ : 


63 


Medicine, drugs 


96 


Metals... 


48 


Miscellaneous securities 


48 


Office and business eauipment. 


37 


Oil prodiicine and refining 


36 


Paper and paper products ... 


22 


Railroad equipment 


29 


Shipping and shipbuilding. . . 


19 


Steel and iron .. 


24 


S^'igar producing and refining ^ 

Textiles and apparel 


66 
68 


Tobacco products 


45 






Mainly manufacturing 


365 
35 


41 
43 


34 

28 


46 
38 


41 


All other companies 


38 


All companies 


400 


41 


33 


45 


40 







' Current liabilities including accrued expenses plus funded debt. 
Source: Standard Statistics. 



CONCENTRATION OF ECONOMIC POWER 105 

So far as industrial variations in the current to total debt ratio are 
concerned, the Standard Statisttcs ratios cover almost the maximum 
possible range. The highest ratio possible is, of course, 100 percent, 
and this very ratio is recorded by one of the industrial groups, con- 
tainer manufacturers. Another group practically in the same category 
is the medicine and drug industry, with an average of current to total 
debt of 96 percent. That is to say, the companies in these two indus- 
tries have virtually no long-term debt. All of their debt is in current 
form. The lowest point to which this ratio could fall is, of course, 
zero. Although there are no corporations in that category, there are 
some not very far above. For example, the firms in the shipping and 
shipbuilding industry have on the average only 19 percent of their 
total debt in that form. Also down in that area are paper and paper 
products, 22 percent; tires, 23 percent; and steel and iron, 24 percent. 
The extreme variability in this ratio, considering the maximum 
possible variability, indicates the marked differences which exist 
among industries as to the 'way in which corporations incur their 
debts. One would expect firms with a period of production as long^ 
as that found in shipbuilding to have an extremely low ratio of current 
to total debt. At the other end of the scale, however, there seems to 
be no explanation why the container manufacturers, for example, 
should not have long-term debts. Certainly, length of the period of 
production would hardly be an explanation. It is probably to be 
explained as much by the profitability of the corporations and by 
credit facilities, as by any other reasons. 

Taking all 400 companies together, the ratio was smallest in the 
depression years due to a greater relative decline in current debt. 
This same trend over the entire period is to be found in 17 of the 25 
industrial groups, and in the nonmanufacturing category. The 
exceptions are the container and medicine industries whose ratios- 
were practically stable over the period, and the metal industry whose 
ratio of current to total debt was actually higher during the depression 
than in either of the other two periods, due to a concurrent decrease 
in total debt and increase in current debt. The remaining four firms, 
that is, electrical equipment and radios, beverages, sugar producers 
and refiners, and textiles and apparel, had an increasing ratio of 
current liabilities to total debt over the entire period. This increasing 
ratio is caused by a decline in total -debt greater than the fall in current 
debt. The fact that the metal industry had a higher ratio of current 
to total debt in depression times and four other industries — electrical 
equipment, beverages, sugar, and textiles — had a rising ratio over the 
entire period is indicative of their ability to withstand the depression 
drain on working capital funds and to scale down their fixed charges. 

Small Manufacturing Corporations. 

As pointed out above, an important factor in the capitalization of 
manufacturing corporations is how much of their equity is repi'esented 
by shares of common stock outstanding and how much is represented 
by paid-in surplus and retained earnings. In order to gain some 
insight into this factor for 1,000 small manufacturing corporations 
covering the period 1925-36 and the 300 additional small inanu,fac- 
turing corporations covering the period 1930-36, the ratio of capital 
stock to surplus is presented in table 53. 

Six ratio classes are given in the table, and percentages have been 
computed for three of these groups. The first column shows the- 



106 



CONCENTRATION OF ECONOMIC POWER 



number of companies having a capital stock to surplus of less than 1 ; 
that is to say, these companies have more surplus than capital stock. 
The next column shows the number of companies with a capital stock 
to surplus ratio of 1 to 2 ; the third column gives the percentage which 
the companies in the first two categories; that is, under 1 and 1 to 2, 
bear to the total number of companies in each industry. The fourth 
column gives the number of companies with a capital stock to surplus 
ratio of 2 to 3, the next column that of 3 to 4, and the sixth column 
4 and over. The next column gives the percentage which the number 
of companies having a capital stock ratio of 4 and over bears to the 
total number of companies in each industry group. The eighth 
column under each year gives the number of companies in each 
industry with a deficit; that is to say, no ratio of capital stock to 
surplus could be computed. The next column gives the percentage 
of deficit companies to all companies, by industries, and the final 
column gives the total number of companies in each industry in each 
year. It will be observed that these percentages serve to distinguish 
three broad groups of companies, based on the capital stock to surplus 
relationship. The first, those under 2, a^e the large surplus corpora- 
tions, that is, large relative to capital stock. Second, those with a 
ratio over 4 are the small surplus corporations, and finally, there are 
the deficit companies. 

Table 53. — Frequency distribution of ratio of capital stock to surplus by selected 
ind^istries, sample of small manufacturing corporations, 192B-S6 



Industry and year 


Less 
than 1 


1-1.9 


Per- 
cent- 
age, 
0-1.9 


2-2.9 


3-3.9 


4 and 
over 


Per- 
cent- 
age, 4 
and 
over 


Deficit 


Per- 
cent- 
age 
deficit 


Total 


1925 
Bakeries 


Number 
of com- 
panies 
26 
20 
49 
43 
32 


Number 
of com- 
panies 
13 
17 
35 
20 
19 


Per- 
cent 
26 
21 
46 
37 
29 


Number 
of com- 
panies 
10 
13 
21 
7 
14 


Number 
of com- 
panies 
7 
8 
6 
9 
5 


Number 
of com- 
panies 
47 
79 
37 
41 
36 


Per- 
cent 
31 
45 
20 
24 
20 


Number 
of com- 
panies 
49 
40 
35 
51 
72 


Pet- 
cent 
32 
23 
19 
30 
40 


Number 
pf com- 
panies 
152 


Men's clothing 

Furniture 


177 
183 


Stone and clay 

Machine tools 


171 

178 


Total 

Failures — 
Survivors.. 


170 
78 
92 


104 
45 
59 


32 
25 
41 


65 
35 
30 


35 

17 
18 


240 

•149 

91 


28 
30 
25 


247 
167 
80 


29 
34 
22 


861 
491 
370 


1926 


24 
24 
51 
41 
33 


15 
16 
46 
28 
24 


21 
29 
48 
36 
29 


13 

17 
15 
11 
17 


15 
10 
5 
6 
10 


42 
75 
44 
36 
33 


23 
37 
22 
19 
17 


78 
62 
42 
68 

78 


42 
30 
21 
36 
40 


187 


Men's clothing 


204 
203 


Stone and clay 

Machine tools 


190 
196 


Total 

Failures 

Survivors.. 


173 
77 
96 


129 
66 
63 


31 
25 
40 


73 
40 
33 


46 
16 
30 


230 
136 
94 


24 
23 
24 


328 
245 
83 


34 
42 
21 


979 
580 
399 


1927 
Bakeries 


27 
21 
50 
44 
37 


19 
18 
28 
28 
22 


27 
21 
42 
40 
32 


13 
14 
15 
7 
10 


12 
16 
9 
7 
6 


31 
46 
36 
35 
41 


18 
25 
20 
19 
22 


70 
69 
46 
61 
71 


41 
38 
25 
34 
38 


172 


Men's clothing 


184 
184 


Stone and clay 

Machine tools 


182 
187 


Total 

Failures 

Survivors.. 


179 
74 
105 


115 
53 
62 


^2 
25 
41 


59 
27 
32 


50 
28 
22 


189 
96 
93 


21 
19 
23 


317 
228. 
89 


35 
45 
22 




909 
506 
403 



CONCENTRATION OF ECONOMIC POWER 



107 



Table 53. — Frequency distribution of ratio of capital stock to surplus by selected 
industries, sample of small manufacturing corporations, 1926-36 — Continued 



Industry and year 


Less 
than 1 


1-1.9 


Per- 
cent- 
age, 
0-1.9 


2-2.9 


3-3.9 


4 and 
over 


Per- 
cent- 
age, 4 
and 
over 


Deficit 


Per- 
cent- 
age 
deficit 


Total 


1928 
Bakeries.. 


Number 
of com- 
panies 
29 
20 
46 
44 
44 


Number 
of com- 
panies 
19 
16 
16 
19 
25 


Per- 
cent 
29 
24 
38 
40 
40 


Number 
of com- 
panies 
9 
11 
16 
9 
10 


Number 
of com- 
panies 
8 
14 
10 
3 
10 


Number 
of com- 
panies 
33 
47 
30 
31 
32 


Per- 
cent 
20 
31 
18 
20 
18 


Number 
of com- 
panies 
66 
45 
45 
52 
54 


Per- 
cent 
40 
29 
28 
33 
30 


Number 
of com- 
panies 
164 


Men's clothing 

Furniture . .. 


153 
163 


Stone and clay 

Machine tools 


158 
175 


Total 

Failures 

Survivors.. 


183 
61 
122 


95 
39 
66 


34 
24 
45 


55 
29 
26 


45 
22 
23 


173 
80 
93 


21 
19 
23 


262 
182 
80 


32 
44 
20 


813 
413 
400 


1929 
Bakeries 


28 
17 
44 
39 
49 


18 
18 
19 
22 
16 


30 
26 
48 
42 
39 


14 
15 
9 
3 

12 


8 
11 
8 
7 
9 


31 
27 
24 
25 
31 


21 
20 

17 
17 
18 


52 
45 
41 
48 
52 


34, 
34 
28 
33 
31 


161 


Men's clothing 

Furniture 


133 

145 


Stone and clay 

Machine tools 


144 
169 


Total 

Failures.... 
Survivors.. 


177 
50 
127 


93 
39 
54 


36 
26 
45 


53 
21 
32 


43 
23 
20 


138 
48 
90 


19 
14 
23 


238 
162 
76 


32 
47 
19 


742 
343 
399 


1930 


36 
15 
47 
43 
51 


22 
22 
30 
17 
15 


30 
20 
41 
35 
33 


12 
19 
14 
11 
11 


4 
11 
6 
4 
9 


46 
62 
. 31 
32 
46 


25 
33 
17 
18 
23 


67 
59 
60 
67 
69 


36 
31 
32 
39 
34 


187 


Men's clothing 

Furniture. 


188 
188 


Stone and clay 

Machine tools 


174 
201 


Total 

Failures 

Survivors.. 


192 
44 
148 


106 
31 

75 


32 
19 
41 


67 
29 
38 


34 
11 
23 


217 
77 
140 


23 
20 
26 


322 
200 
122 


34 

51 
22 


938 
392 
546 


1931' 
Bakeries 


38 
11 
37 
36 
43 


14 
15 
15 
15 
17 


31 
16 
31 
31 
31 


10 
11 
6 
9 
8 


6 
13 
12 
8 
3 


25 
45 
31 
28 
41 


15 
28 
18 
17 
21 


75 
65 
69 
68 
80 


45 
41 
41 
42 
42 


168 


Men's clothing 

Furniture... 

Stone and clay 

Machine tools 


160 
170 
164 
192 


Total. 

Failures 

Survivors.. 


165 
30 
135 


76 
16 
60 


28 
15 
36 


44 
10 
34 


42 
12 
30 


170 
55 
115 


20 
18 
21 


357 

184 
173 


42 
60 
32 


854 
307 
547 


1932 

Bakeries 

Men's clothing 

Furniture 

Stone and clay 

Machine tools 


28 
7 
28 
30 
30 


17 
15 
12 
14 
19 


30 
17 
28 
30 

27 


8 
3 
5 
10 
5 


5 
4 
3 
4 
4 


22 
32 
19 
24 
27 


15 
25 
14 
16 
15 


69 
69 
77 
67 
100 


46 
53 
54 
45 
54 


149 
130 
144 
149 
185 


Total 

Failures 

Survivors.. 


123 

16 

107 


77 
14 
63 


26 
14 
31 


31 

5 

26 


20 
4 
16 


124 
26 
98 


16 

12 
18 


382 
147 
235 


51 
69 
43 


757 
212 
545 


1933 

Bakeries 

Men's clothing 

Furniture... 

Stone and clay..... 
Machine tools. 


29 
8 
25 
30 
23 


11 
12 
10 
10 
16 


29 
17 
27 
30 
22 


9 
5 
6 
7 
12 


6 
4 
5 
5 
4 


14 
28 
15 
15 
24 


10 
24 
12 

n 

14 


70 
61 
68 
67 
97 


50 
52 
53 
50 
55 


139 
118 
129 
134 
176 


Total 

Failures 

Survivors.. 


115 

10 

105 


59 

8 

51 


25 
12 
29 


39 

39 

I 


24 
5 
19 


96 14 
21 14 
75 14 


363 

105 
258 


52 

71 
47 


696 
149 
547 



108 



CONCENTRATION OF ECONOMIC POWER 



Table 53. — Frequency distribution of ratio of capital f>tock to surplus by selected 
industries, sample of small manufacturing corporations, 1926-36— Continued 



Industry and year 


Less 
than 1 


1-1.9 


Per- 
cent- 
age, 
0-1.9 


2-2.9 


3-3.9 


4 and 
over 


Per- 
cent- 
age, 4 
and 
over 


Deficit 


Per- 
cent- 
age 
deficit 


Total 


1934 

Bakeries 

Men's clothing 

Furniture -- 

Stone and clay 

Machine tools. 


Number 
of com- 
panies 
24 
7 

22 
21 
24 


Number 
of com- 
panies 
11 
14 
10 
11 
9 


Per- 
cent 
36 
21 
28 
26 
20 


Number 
of com- 
panies 
4 
8 
6 
8 
15 


Number 
of com- 
panies 
6 
3 
2 
2 



Number 
of com- 
panies 
15 
20 
21 
14 
26 


Per- 
cent 
11 
20 
19 
11 
16 


Number 
of com- 
panies 
74 
47 
53 
68 
94 


Per- 
cent 
55 
48 
47 
55 
56 


Number 
of com- 
panies 
134 
99 
113 
124 
168 


Total.. 

Failures 

Survivors.. 


98 

4 

94 


■ ■ «" 

55 

4 

.51 


24 
9 
27 


40 

1 
39 


13 

13 


96 
13 
83 


15 
14 
16 


336 
69 
267 


53 
76 
49 


638 
91 
647 


1935 


21 
6 
23 
19 
26 


16 
10 
9 
11 
12 


31 
17 
30 
25 
24 


8 
4 
5 
8 
14 


2 
4 
4 

2 


13 
23 
22 
17 
24 


11 
25 
21 
14 
15 


61 
46 
44 
65 
83 


50 
50 
41 
64 
62 


121 


TMen's clothing..... 


93 
107 


Stone and clay 

Machine tools. 


120 
161 


Total 

Failures 

Survivors.. 


95 

4 

91 


58 
3 
55 


25 
13 
27 


39 

1 

38 


12 

12 


99 

6 

93 


16 
11 
17 


299 
40 
259 


50 
74 
47 


602 
54 
548 


1936 


22 

5 

23 

18 
28 


16 
9 
8 
11 
12 


36 
18 
32 
26 
27 


3 

5 
5 
7 
7 


5 
4 
7 
3 

7 


15 
21 
20 
18 
27 


14 
27 
20 
16 
18 


46 
34 
38 
54 
67 


43 
44 
38 
48 
45 


107 


Men's clothing 

Furniture 


?8 
101 


Stone and clay 

Machine tools 


111 
148 


Total 

Failures 

Survivors. - 


96 



96 


56 

56 


28 

28 


27 

27 


26 

26 


101 



101 


19 

19 


239 

1 
238 


44 
100 
44 


546 

1 

544 



Source: Proposal 14 of the Income Tax Study, Philadelphia. The basic data classified by asset size and 
area are available in Washington. See Appendix F, list of omitted tables (numbers 14 and 16). 

Almost a third of these small manufacturing corporations fell into 
the so-called large surplus category in the late 1920's. The propor- 
tion dropped to a fourth in 1934 which is evidence that perhaps sur- 
pluses were being eaten up by dividends and by losses, probably more 
by the latter than by the former. The proportion of small manu- 
facturing corporations with a relatively large surplus, that is, the per- 
centage having a capital stock to surplus ratio of under 2, rose to 28 
percent again by 1936. The proportion in the small surplus category, 
that is, those with a capital stock to surplus ratio of 4 and over, fell 
from 28 percent to 19 percent over the period 1Q25-29. The ratio 
rose sharply in the year 1930, which may be due to the addition of a 
supplementary sample of 300 companies in that year. The fall con- 
tinued in the early 1930's until the proportion of companies in the 
small surplus category was only 14 percent in 1933.* Thereafter it 
rose slightly to 19 percent in 1936. Over the period, about a fifth 
of these small corporations had a capital stock to surplus ratio of 4 or 
more; that is, the capital stock is large, relative to the surplus, or, 
conversely, the surplus is small, relative to the capital stock. The 
percentage of companies having a deficit increased rather persistently 
from 29 percent in 1925 to 53 percent in 1934, except for a temporary 

< This is contrary to what one might expect in a period of losses, but may be partly explained by the 
•concurrent increase in the proportion having a deficit. 



CONCENTRATION OF ECONOMIC POWER J 09 

fall after 1927. In the years subsequent to 1934 the proportion of 
companies in the deficit category fell back to 44 percent in 1936, only 
slightly above the 1931 standing. 

Examination of the industry break-down of the capital stock to 
surplus ratio reveals a few changes over the period 1926-36 in the 
relative standings of the different industrial categories. In 1925 the 
furniture group had the largest percent of companies in the large sur- 
plus category; that is, with a ratio of under 2. The clothing group 
had the lowest percent, 21. Bakeries were next to the bottom, stone 
clay next to the top, and machine tools in the middle. Thereafter 
the spread between the high and low narrowed. In 1933 we find the 
stone group at the top, with 30 percent in the large surplus category; 
the clothing group still at the bottom, with 17 percent in the large 
surplus categories; and, ranking between those two extremes, bakeries, 
furniture, and machine tools, from high to low. In 1936 bakeries 
had finished their climb to the top and were in first place, with 36 
percent of the companies having a large surplus relative to the capital 
stock. Clothing manufacturers were still at the bottom, with 18 
percent in the large surplus category. 

If we go to the other extreme, the proportion with a relatively small 
surplus, we find a similar picture in reverse. There the clothing indus- 
try is high, with 45 percent of the companies in that group having a 
capital stock to surplus ratio of 4 and over in 1925. Bakeries which 
were next to the top in that year — 1925 — had fallen to the bottom of 
the scale by 1933 and occupied the same place in 1936; that is to say, 
they started out with a relatively high- proportion of companies in the 
small surplus category, but wound 'up the period with the smallest 
proportion of the companies in the small surplus category. As in the 
case of the large surplus companies, the spread between the high and 
low in the small surplus group also narrowed during the late 1920's. 
However, during the depression the spread again, increased and was 
approximately equal to the 1925 range of high and low,. 

The machine-tool manufacturers dominate the companies with a 
deficit, while the furniture group generally has the smallest proportion 
of its firms in this deficit category. The spread between high and 
low for this ratio also narrowed considerably in the years after 1925. 
In 1925 machine tools had 40 percent of their firms in the deficit 
category, while there were 19 percent of the furniture factories in the 
same group. By 1929 the spread was from a high of 34 percent to a 
low of 28 percent, and in 1933 the range was from 55 percent for 
machine tools to 50 percent for stone clay and the bakery industry. 
In 1936 stone was high, with 48 percent of their firms in the deficit 
category; furniture again was low, with 38 percent. Machine tools 
in this year were second from the top. Bakeries, which had been 
next to the top in 1925, were, in 1936, next to the bottom; that is to 
say, over the entire period the bakery industry seemed to be sliding 
gradually out of the deficit category. 

As might have been expected, the large surplus category predomi- 
nated among the survivors, while the low surplus and the deficit 
groups were popular among the failures. In the group with a ratio 
of less than 2, the survivors outnumbered the failures 2 to 1, except 
in 1934, when it was 3 to 1. In the group with a ratio of 4 and over, 
the failures h^d a slight edge in 1925, but the survivors grew for the 
succeeding years. The proportion of failures in the deficit group is 



no 



CONCENTRATION OF ECONOMIC POWER 



twice that of the survivors until 1931. After that year it is slightly 
under 2 to 1. 

One of the objections sometimes inveighed today against the capital 
structure of American corporations concerns their allegedly heavy 
funded debt. The argument is that financing should be done by 
equity shares rather than interest-bearing securities. Such criticisms 
seem to be directed primarily at the larger corporations, but one 
wonders whether the smaller firms may also be culpable on this score. 
At least a partial answer, on a sample basis, is given by table 54,. 
which presents a frequency tabulation of the funded debt to capital- 
stock ratio for a group of 1,000 corporations over the period 1925-36, 
and for an additional group of 300 corporations beginning in 1930. 



Table 54. — Sample of small manufacturing corporations, classified by 
of funded debt. to capital stock and by industry, 1926-36 


size 


of ratio- 




No funded 
debt 


1 

a 

o 


UP 

> 


1 

a 

3 

a 
o 


No funded 
debt 


L 

oS 
a 

o 


73 

afe 

> 


S 

3 

a 

3 

o 
Eh 


No funded 
debt 


a 
8 

oB 

C 

o 


X! 
li 

> 




Industry 


s 


□ 

(2 


s 

3 


a 
8 


XI 

Q 

3 


a 
I 

(2 


3 

a 

o 
E-i 




1925 


1926 


1927 


Baking 


129 
180 
171 
150 
163 

793 
470 
323 


76 
94 
91 
82 
87 


19 

7 
7 
19 
10 


21 
4 
10 
13 
15 


169 

191 
188 
182 
188 

918 
531 
387 


139 

198 
178 
160 
168 


74 
96 
88 
83 
85 


25 
4 
16 
22 
12 


24 
5 
10 
11 
17 


188 
207 
203 
193 
197 


126 

178 
160 
155 
152 


73 
96 
86 
84 
81 


23 
3 
14 
18 
15 


23 
4 
12 
11 
20 


17?- 


Men's clothing 

Furniture 


185 
186. 


Stone-clay. 


184 


Machine tool 


isr 






Total 


86 
89 
83 


^2 
34 
28 


63 
27 
36 


843 
507 
336 


85 
87 
83 


78 
43 
35 


67 
35 
32 


988 
585 
403 


771 
442 
329 


84 
86 
82 


73 
36 
37 


70 
33 
37 


914- 


Failures 

Survivors... 


511 
403: 




1928 


1929 


1930 


Baking 


118 
147 
137 
131 
142 

075 
c56 
319 


71 
95 
83 
81 
81 


25 
2 
14 
18 
11 


23 
5 

14 
13 
23 


166 
154 
165 
162 

176 


103 
125 
119 
115 
128 


68 
93 
81 
78 
75 


29 

5 
-13 
20 
13 


20- 
4 
15 
13 
30 


152 
134 
147 
148 
171 


127 
183 
149 
131 

158 


67 
96 
79 
73 

78 


34 

4 

22 
29 
21 


29 
3 

18 
20 
24 


190^ 


Men's clothing 

Furniture... 


190 
189 


Stone-clay 


180 


Machine tool 


?n3 






Total 


82 
85 
79 


70 
33 
37 


78 
31 
47 


823 
420 
403 


590 
284 
306 


78 
81 
76 


80 
33 
47 


82 
32 
50 


752 
349 
403 


748 
324 
424 


79 

81 
77 


110 
43 
67 


94 
32 
62 


95? 


Failures 

Survivors... 


399 
553 




1931 


1932 


1933 


Baking.. 


110 
153 
138 
122 
150 

673 
246 
427 


65 
95 
81 
73 

77 

78 
79 
77 


30 
3 
13 
26 
23 

95 
35 
60 


29 
5 
20 
18 
22 

94 
29 
65 


169 
161 
171 
166 
195 

862 
310 
552 


103 
125 
113 

108 
140 

589 
167 
422 


69 
94 
78 
71 

75 

77 
77 
77 


23 
4 
15 
23 
29 

94 
27 
67 


24 

4 

17 

21 

18 

84 
23 
61 


150 
133 
145 
152 
187 

767 
217 
550 


91 
109 
100 

94 
135 


65 
93 
76 
70 

75 

75 
73 
76 


26 
4 
16 
23 
25 

94 
25 
69 


24 
4 
15 
18 
19 

80 
15 
65 


141 


Men's clothing 

Furniture 


117 

m 


Stone-clay.- 


las 


Machine tool 


179 






Total 


529 
110 
419 


703 


Failures 

Survivors... 


150 
553 




1934 


1935 


1936 


Baking 


89 
90 
86 
91 
130 


66 
92 
74 
73 
76 

75 
77 
75 


23 
4 
16 
18 
25 

86 
11 
75 


23 

4 
14 
16 
15 

72 
10 
62 


135 
98 
116 
125 
170 

644 

93 

551 


76 
85 
83 
90 
125 

459 

43 

416 


63 
92 

77 
74 

77 

76 

78 
75 


23 
3 
14 
16 
23 

79 

7 

72 


22 
4 
11 
16 

15 

68 

5 

63 


121 
92 
108 
122 
163 

606 

55 

551 


73 
73 
72 
78 
111 

407 

1 
406 


68 
92 

73 
70 
74 

74 


19 
3 

n 

17 
24 

80 


16 
3 

10 
16 
15 

60 


108 


Men's clothing 

Furniture 


79 
99 


Stone-clay 


HI 


Machine tool 


150 






Total 


486 

72 

414 


"147 


Failures 




Survivors... 





















Source: Proposal 14 of Income Tax Study, Philadelphia. The basic data classified by asset size and area 
are available in Washington. See Appendii F, list of omitted tables (number 12 and 13.) 



CONCENTRATION OF ECONOMIC POWER m 

The majority of corporations in this sample of small manufacturing 
enterprises have no funded debt. Of the total number of corporations 
in all five industries in 1925, 86- percent had no funded debt. In the 
next year the relative percentage is 85, then 84. The proportion 
falling to 82 and 78 in 1928 and 1929, respectively, rises slightly in 
1930, and then begins slipping again, finally falling as low as 74 
percent in 1936. The proportion of corporations having no funded 
debt also varies industrially. About two-thirds of the baking cor- 
porations have no funded debt. That represents a low figure. In 
clothing, the percentage is in the 90's, which means that practically 
no corporations engaged in making men's clothing have a funded 
debt. Furniture manufacturers have the second highest proportion of 
firms without funded debt, while the stone-clay companies and the 
machine-tool manufacturers are under the furniture level. That 
bakers should have relatively few corporations without a funded 
debt is probably to be explained by the relatively stable earnings in 
this industry.^ One might imagine that machine-tool manufacturers 
with their heavy investments in capital goods would also be in this 
category, but their relatively variable earnings preclude loading them- 
selves with heavy fixed charges. The large proportion of bakers with 
a funded debt is emphasized by a similar increase in the proportion of 
baking corporations with a funded debt over the period 1925-36. 
There is hardly any temporal decline in the proportion of men's 
clothing firms without a funded debt, but there are significant declines 
in this proportion for the other three industrial categories. Finally, 
those corporations having a funded debt are fairly evenly divided 
between those with a relatively small amount of long-term debt 
outstanding — that is, a funded debt equal to to 40 percent of their 
capital stock — and those having a relatively large amount outstand- 
ing — that is, a funded debt equal to 40 percent or more of their 
capital stock. The former category has a slightly larger number in 
9 of the 12 years but hardly large enough to be significant. 

In the preceding paragraph it was pointed out not only that the 
majority of these corporations have no funded debt, but also that the 
proportion having no funded debt has been decreasing over the period 
1925-36. To repeat, table 54 shows that of the total number in the 
sample in each year the proportion having no funded debt fell prac- 
tically consistently from 86 percent in 1925 to 74 percent in 1936. 
Moreover, this tendency was to be observed in each of the five indus- 
trial groups; in some such as men's clothing, rather haltingly and in 
others such as baking, rather decidedly, but in all, noticeably. This 
apparently greater importance of funded debt in the financial struc- 
ture of these small manufacturing corporations is particularly signifi- 
cant in view of recent discussions concerning the decline of the com- 
mercial bank loan to industry and of official pleas for less funded 
debt in capital structures.^ This table indicates that, more and more, 
these small manufacturing corporations are coming to rely upoil long- 
term debts, that is bonds and mortgages of more than 5 years duration, 
for some part of their capital. 

Another conclusion to be drawn from table 54 is that, of those cor- 
porations having a funded debt, the tendency is toward a smaller 

' This is on the general principle that the more stable the earnings, the smaller the proportion of equity 
in total capital need be. 

' Cf. Jerome N. Frank, "Too Much Interest in Interest," speech before National Association of Securities 
Commissioners, Kansas City, September 22, 1938. 



2J2 CONCENTRATION OF ECONOMIC POWER 

funded debt. That is to say, those corporations having a funded 
debt are tending to concentrate themselves in the under-40-percent 
class at the expense of the 40-percent and over category. This 
tendency is not particularly well marked and may be due to the 
entrance of new firms into the funded debt category, a tendency 
pointed out in the preceding paragraphs. Nevertheless, it cannot be 
denied that of the 1,300 corporations considered here, those having a 
funded debt are tending to fall into the category of a rather small 
funded debt rather than in the category of a rather large funded debt, 
defining the former in terms of a ratio of funded debt to capital stock 
of less than 40 percent and the latter in terms of a ratio of funded debt 
to capital stock of 40 percent or more. 

We come now to modifications in the foregoing conclusions intro- 
duced by dividing the corporations into two broad categories of (1) 
those that survived throughout the entire period covered and (2) those 
which failed or v/ent out of operation sometime during the period. 
There were relatively more failures without a funded debt than 
survivors, indicating the difficulty the less successful firms have of 
borrowing outside capital. This was true in every year except 1932 
when the proportions of failures and siu-vivors without a funded debt 
were both 77 percent, and in 1933 when 76 percent of the survivors as 
opposed to 73 percent of the failures were without a funded debt: 
However, the difference between the proportion of failures and sur- 
vivors having a funded debt in each year is not very large. 

The trend away from the no-funded-debt condition is found in both 
the survivor and failure groups, but is slightly more pronounced in the 
latter than in the former. Of those corporations having o funded debt, 
the failures are more concentrated in the relatively small funded-debt 
group than are the survivors. More failures are to be found in the 
to 40 percent category in every year than are found in the 40-percent- 
and-over group. On the other hand, the surviving corporations hav- 
ing a funded debt are less concentrated in the small-funded-debt 
group. In 4 years out of the period there were actually more survivors 
in the large-funded-debt group, that is, with a ratio of 40 percent or 
more, than there were in the smaller group, and in another year they 
were evenly divided between these two groups. This general dis- 
tinction, however, is not very pronounced and should not be over- 
emphasized. 

The inadequacy of an aggregate funded debt to capiial-stock ratio 
for the companies in this sample is obvious. Such an aggregate ratio 
for all 547 companies in 1936 would figure out at about 15 percent.'^ 
From this one might conclude that these corporations have a small 
funded debt relative to their capital stock. However, the truth of 
the matter is that of the 547 corporations, 407 had no funded debt, 
that is to say, 74 percent of the corporations had no long-term-debt 
issues outstanding. In addition, of the 140 corporations with a 
funded debt, the percentage is significantly higher than 15 percent. 
An average of the funded debt to capital-stock ratio for those corpo- 
rations having a funded debt would probably come out at something 
in excess of 50 percent. This is quite a different picture from the 15 
percent average ratio of funded debt to capital stock for all 547 corpo- 
rations considered in the aggregate. Unfortunately, this ratio is no 
exceptional case; almost any financial ratio submitted to a similar 

' The data required for a more accurate approximation are uot available. 



CONCENTRATION OF ECONOMIC POWER 



113 



test would give parallel results. It is not safe to generalize too much 
from aggregate ratios when analyzing the financial structure of man- 
ufacturing corporations. To get a true picture it is necessary to 
examine, also, the scatter of the ratios for the particular companies. 

In analysis of the financial statements of corporations which nor- 
mally publish their balance-sheet and income statements for each year^ 
it would be misleading to construct such a table as the one here 
presented unless account had been taken of revaluations of capital 
stock. It not infrequently happens that, especially among the larger 
corporations, the capital stock outstanding as shown on the balance 
sheet will be doubled or halved bj^ a mere change in the par or stated 
value of the stock outstanding. Some idea of the number of corpo- 
rations in the Standard Statistics sample of 400 firms which altered 
their capital-stock valuation by mere bookkeeping entries sometime 
during the 1927-38 period is given in table 55. Although the bulk of 
the 400 firms — 258, or 65 percent — did not revalue their capital stock, 
the rest of them made some type of alteration which probably, but not 
necessarily, involved a mere bookkeeping change. Changes from, par 
to no-par, or vice versa, were made by 88 firms, shifts from no par to 
par predominating and indicating a reversal of a tendency (toward 
no-par stock) once quite marked in corporation finance. Such shifts 
in the type of stock outstanding need not have involved revalua- 
tion, but they probably did. The remaining firms, however, which 
either changed the par value of their par value stock or the stated 
value of their no-par stock, undoubtedly were indulging in bookkeeping 
revaluations. It would obviously be necessary to take these revalua- 
tions into account before attempting to construct for the Standard 
Statistics sample a table such as that shown here for the small manu- 
facturing: corporations. This modification has not been introduced 
into table 54, because of the difficulty in obtaining from the inco.me-tax 
returns the desired information, and because it is not believed that 
revaluations of capital stock are particularly common among the small 
corporations to which the sample was limited. An examination of 
the returns revealed little evidence of changes in the par value signifi- 
cant enough to mar the validity of table 54. There undoubtedly were 
some such revaluations, but it is believed that they were not such as 
to invalidate the general conclusions pointed out above. 

Table 55.— Distribution of par and no-par common stock, Standard Statistics 
1927-38 composite of 400 identical companies 



Industry 


Number 
of com- 
panies 


Unal- 
tered par 
stock 1 


Unal- 
tered 
no-par 
stock I 


Change 
DO-par 
to par 8 


Change 
par to 
no-par • 


Change 
in par 
value • 


Change 
in stated 
value • » 


Advertising, printing and pub- 
lishing _-- 


7 
13 
27 
10 

4 
22 
10 

3 
10 
27 



2 

1 
1 

5 
1 
2 
1 
6 


6 
3 

16 
6 
3 

11 

12 
1 
7 

16 



2 
9 
2 
1 
3 
4 





1 
2 
1 


1 
2 

2 
1 



4 

1 

2 



6 





Automobiles and trucks 

Automobile parts. 




1 


Automobile tires 





Beverages _ 





Building equipment ...... 





Chemicals, fertilizer 





Containers 





Electrical equipment, radio 

Food products 







> Par or stated value unchanged throughout the period 1927-38. 
' Sometime during the period 1927-38. 
' That is, stated value of no-par shares. 

Source: Moody's Industrials, 1938. 



114 



CONCENTRATION OF ECONOMIC POWER 



Table 55 — Distribution of par and no-par common stock, Standard Statistics 
1927-S8 composite of 4OO identical companies — Continued 



Industry 


Number 
of com- 
panies 


Unal- 
tered par 
stock 


Unal- 
tered 
no-par 
stock 


Change 
no-par 
to par 


Change 
par to 
no-par 


Change 
in par 
value 


Change 

in stated 

value 


Household products 


16 

7 
25 

5 
21 
24 

9 
25 

3 
10 

7 
17 

30 
16 



2 
3 
1 
8 
4 
1 
8 

1 
1 
8 
2 
5 
4 


10 
3 

10 
3 
4 

10 
4 
6 
1 
5 
3 
8 
3 

15 
6 


3 
1 
4 
1 
3 
3 
2 
2 

1 
2 


4 
3 


3 

5 

1 
3 

2 
1 
1 

1 
1 
4 
1 




1 

4 
2 


I 

1 
1 
2 
2 







1 


Machinery - 


2 


Medicine, drugs . 







1 


Miscellaneous manufacturing- , 
Office and business equipment. 

Oil proiiucing and refining 

Paper and paper products 


2 
2 


2 


Shipping and shipbuilding 

Steel and iron 


1 

1 


Sugar producing and refining.,. 
Textile and apparel 


I 



Tobacco products . 









Mainly manufacturing 


365 
35 


67 
6 


168 
17 


50 

4 


33 

1 


33 
5 


14 


All other companies . . .. 


2 






All companies 


400 


73 


185 


.54 


34 


38 


16 







FIXED-CAPITAL USES 

The sources of the fixed capital of Am.erican manufacturing corpora- 
tions have been indicated in a general fashion. There now remains 
to ascertain the uses to which this capital is put. Has the m.anage- 
m.ent of these corporations selected the safest and most productive 
uses from, the m.any alternatives, and has it com.bined these uses in the 
m.ost efficient proportions, that is, proportions yielding m.axim.um 
returns at m.inim.um. costs? A satisfactory answer cannot be m.ade to 
this question here — the case-study type of an analysis is indicated — 
but som.e general observations thereon can be ventured. 

Four tables contain the underlying data by which it is planned to 
discuss this question for all m.anufacturing corporations. Table 56 
presents ratios of net-capital assets to invested capital (i. e., net worth 
plus funded debt) for total m.anufacturing and the five sub groups 
for the years 1926 through 1936. The sam.e ratio for total manu- 
facturing classified by asset size and covering the years 1931-36 is 
contained in table 57. Table 58 corresponds to table 56 except that 
it covers the ratio of current assets to totpJ capital (i. e., net worth 
plus total debt), and table 59 corresponds sim.ilarly to table 57. For 
the sam.ple of 400 large corporations the ratio of fixed assets to in- 
vested capital (table 60) and the relationship between changes in 
plant investm.ent and in volum.e of business (table 61) are analyzed. 
No tabulations on the sam.ple of sm.all corporations are available on 
this particular segm.ent of corporation finance. 

All Manufacturing Corporations. 

On the average over an 11-year period covering every phase of the 
business cycle, Am.erican m.anufacturing corporations held, in the 
aggregate, one-half of their invested capital (i. e., net worth plus 
funded debt) in the form, of net capital assets (see ta.ble 56). Most 
industrial subgroups held about the sam.e proportion, but lum.ber and 
stone,- as one m.ight expect, held nearly two-thirds of their invested 



CONCENTRATION OF ECONOMIC POWER 



115 



capital in this form. This percentage is subject to only modest 
fluctuation during the business cycle, tending to rise somewhat during 
depression when invested capital is depleted by current losses. In 
several divisions of manufacturing (e. g., textiles and metals), 1936 
showed an increase in this percentage, indicating extensive new 
investment in plant and equipment. 

Table 56. — Ratio of capital assets to invested capital ' for total manufacturing and 

6 subgroups, 1926-36 



Year 


Total man- 
ufactuting 


Food 


Textiles ■ 


Lumber 


Stone 


Metals 


1926 


Percent 
62.6 
49.2 
48.7 
48.6 
60.0 
53.1 
52.1 
50.4 
48.5 
48.2 
48.4 
49.8 
61.4 
48.4 
50.0 


Percent 
49.0 
47.8 
47.0 
46.6 
47.3 
63.9 
54.6 
58.9 
59.1 
69.1 
68.8 
47.6 
63.7 
59.0 
52.9 


Percent 
49.4 
46.8 
47.3 
47.6 
60.3 
63.3 
64.6 
52.0 
52.0 
61.3 
67.5 
47.8 
52.6 
53.6 
51.1 


Percent 
64.6 
63.0 
63.0 
60. 6' 
61.9 
64.9 
67.0 
66.0 
66.8 
63.6 
63.6 
62.8 
65.0 
64.7 
64.1 


Percent 
65.0 
62.8 
63.8 
63. S 
64.8 
67; 2 
68.7 
66.3 
65.0 
61.6 
60.7 
63.8 
66.8 
62.4 
64.5 


Percent 
63.1 


1927 


48.4 


1928 


47.0 


1929 


47.5 


1930 


48.9 


1931 


63.3 


1932 . . . ^ 


55. S 


1933 .--- 


61.7 


1934 ■-... 


46.4 


1935 


47.8 


1936 


57. d 


1926-29 ' - --- 


49.0 


1930-33 » ,. 


62.4 


1934-36 > ,- 


60.7 


1926-36' 


60.7 







1 Net worth plus funded debt. 
' Averages of annual ratios. 

Source: Statistics of Income. 

Table 57. — Ratio of capital assets to invested capital ^ for total manufacturing 
classified by asset size, 1931-36 



Asset-size classes 


1931 


1932 


1933 


1934 


1936 


1936 


1931-33 > 


1934-36 > 


1931-.36' 


to $50,000 


Percent 
62.9 
65.9 
54.4 
53.8 
51.2 
50.9 
51.6 
53.1 
63.9 


Percent 
67.1 
57.9 
56.2 
53.7 
62.7 
51.8 
54.0 
52.6 
50.8 


Percent 
65.5 
56.3 
64.8 
52.6 
62.2 
49.9 
53.0 
61.5 
48.7 


Percent 
66.7 
55.3 
64.9 
53.4 
63.0 
51.6 
51.4 
48.8 
43.8 


Percent 
66.7 
65.9 
63.8 
52.3 
61.9 
49.6 
50.4 
47.1 
45.4 


Percent 
66.3 
55.0 
52.4 
51.2 
61.1 
48.3 
48.3 
47.5 
47.3 


Percent 
65.2 
56.7 
65.1 
53.4 
52.0 
50.9 
52.9 
52.4 
61.1 


Percent 
66.6 
55.4 
53.7 
52.3 
52.0 
49.8 
50.0 
47.8 
46.5 


Percent 
66.9 


$50,000 to $100,000 .- 


66.1 


$100,000 to $250,000 ,--- 

$250,000 to $500,000 


64.4 
62.8 


$.S00,00O to $1,000,000 -. 

»1 ,000,000 to $5,000,000. 

$5,000,000 to $10,000,000. 

$10,000,000 to $50.000,000 

$60,000,000 and over 


62.0 
60.4 
61.6 
60.1 

4s;3 




-I- 


• Net worth plus funded d 
' Averages of annual ratios 


3bt. 



















Source: Statistics of Income. 

There are sm.aller asset-size differences in the ratio of fixed assets 
to invested capital than in any other ratio thus far analyzed here. 
(See table 57.) The regression is consistently downward, that is, a 
sm.aller ratio with increasing size, but the range of the 1931-36 pro- 
portions was only 18 percent, from 66 percent in the sm.allest-size class 
to 48 percent in the largest. Over these 6 years there is som.e evidence 
of a decline in this ratio, all size classes sharing therein except the 
$500,000-$l,000,000 bracket. 

Current assets constitute a sm.aller proportion of total capital (net 
worth plus bonds, notes, and accounts payable) than fixed iuvestment 
does of invested capital. (See table 58.) Moreover, the former ratio 
exhibits m.ore inter-industiy variation than the latter, rising from a 

259845 — 40 — No. 15 9 



116 



CONCENTRATION OF ECONOMIC POWER 



low of 29 percent in stone-clay to a high of 50 percent in textiles, on the 
average over the entire period. The total ni.anufacturing level is 38 
percent, around which the other three industrial subgroups cluster. 
There is also somewhat more cyclical variation, in a converse direction. 
That is to say, the proportion falls in depression, the total manufac- 
turing percentage declining from 42 percent in 1926 to 31 percent in 
1932 and rising again to 42 percent in 1936. The metals ratio fluc- 
tuated even more from 44 percent to 32.5 percent back to 51 percent 
in the corresponding years. A depletion of inventories and receiv- 
ables during recession would seem to account for these cyclical swings. 
The sharp building up of current assets in 1936 is evident; gains were 
registered in every division, with textiles and metals rising particularly 
sharply (up 15 and 10 percent, respectively).* 

Table 58. — Ratio of current assets to total capital ' for total manufacturing and 5 

subgroups, 1926-36 



Year 


Total manu- 
facturiug 


Food 


Textiles 


Lumber 


Stone 


Metals 


1926 


Percent 
42.2 
40.5 
40.4 
39.7 
36.8 
34.2 
31.4 
33.2 
38.4 
39.9 
42.0 
40.7 
33.9 
40.1 
38.1 


Percent 
40.1 
40.2 
42.6 
40.2 
40.4 
42.8 
41.4 
47.1 
54.1 
66.2 
60.0 
40.8 
42.9 
66.8 
48.9 


Percent 
56.3 
63.6 
53.3 
54:0 
47.5 
42.1 
38.8 
45.2 
47.1 
60.0 
64.9 
54.3 
43.4 
54.0 
50.3 


Percent 
42.7 
41.0 
41.5 
42.0 
38.3 
33.2 
29.3 
30.4 
32.1 
34.6 
37.9 
41.8 
32.8 
34.9 
36.6 


Percent 
33.8 
31.9 
31.1 
30.3 
28.6 
27.0 
24.6 
25.9 
27.7 
30.8 
31.9 
31.8 
26.6 
30.1 
29.4 


Percent 
44.0 


1927 ..- '. 


41.4 


1928 


41.7 


1929 


41.9 


1930 - 


38.4 


1931 


36.0 


1932 - 


32.5 


1933 


32.7 


1934 - 


38.4 


1935 -.- 


40.6 


1936 - 


50.9 


1926-29 > 


42.3 


1930-33* 


34.9 


1934-36 » 


43.3 


1926-36 » 


39.9 







» Net worth plus total debt, excluding accrued expenses. 

* Averages of annual ratios. 

Source: Statistics of Income. 

As with the preceding ratio, the asset-size variations in this ratio 
are consistently regressive and relatively small, from 55 percent for the 
sm.allest size class to 32 percent for the largest, on the average over the 
years 1931-36. (See table 59.) Conversely to the other ratio, 
however, this one increases over the 6-year period in every size class. 
Moreover, this increase is clearly marked, running around 6 percent in 
each of the size classes. 

In sum.m.ary, Am.erican manufacturing corporations have relatively 
more of their capital invested in fixed than in current assets; the large 
corporations have less of their capital devoted to these two uses, and 
ipso facto m.ore devoted to other assets (goodwill, patent rights, etc.) 
than do the smaller firm.s; and the relative investm.ent in fixed assets 
increases in depression while that in current assets decreases. 

Large Manufacturing Corporations. 

We have exam.ined the relative proportions between fixed assets and 
invested capital for all manufacturing corporations. It now remains 
to inquire what proportion of the invested capital of the companies in 
the Standard Statistics composite is tied up in fixed assets. By 

• Tbis is in the face of any depletion of current assets that the undistributed profits tax might have caused. 



CONCENTRATION OF ECONOMIC POWER 



117 



invested capital we mean, here, net worth phis funded debt, presum- 
ably the long-term capital of the concern. Fixed assets or fixed 
capital should have som.e rather definite relation thereto. Certainly 
the fixed assets should not exceed the invested capital. On the other 
hand, one would not normally expect invested capital to be greatly in 
excess of fixed assets, except insofar as permanent working capital was 
financed by long-term funds. What is the picture for the Standard 
Statistics group? 

Table 59. — Ratio of current assets to total capital ^ for total manufacturing classified 

by asset size, 19SI-S6 



Asset size classes 



to $50,000 - 

$50,000 to $100,000. 

$100,000 to $250,000 

$250,000 to $500,000 

$500,000 to 1,000,000 

$1,000,000 to $5,000,000--. 
$5,000,000 to $10,000,000.. 
$10,000,000 to $50,000,000 
$50,000,000 and over 



1931 


1932 


1933 


1934 


1936 


1936 


1931-332 


1934-36 8 


Percent 


Percent 


Percent 


Percent 


Percent 


Percent 


Percent 


Percent 


52.0 


50.6 


53.4 


56.3 


58.5 


60.9 


52.0 


58.6 


48.6 


45.9 


48.8 


51.5 


• 53.2 


56.1 


47.8 


53.6 


45.7 


42.7 


45.6 


47.7 


50.6 


54.0 


44.7 


.00.8 


42.5 


39.4 


42.4 


44.6 


47.8 


51.6 


41.4 


48.0 


40.5 


37.7 


40.6 


43.0 


46.0 


48.8 


39.6 


45.9 


37.0 


34.7 


37.6 


40.2 


43.0 


46.9 


36.4 


fr43. 4 


34.6 


31.8 


34.5 


38.3 


39.8 


43.6 


33.6 


40.6 


31.6 


29.4 


32.0 


36.2 


37.4 


40.5 


31.0 


38.0 


31.2 


27.9 


28.6 


35.1 


36.6 


35.9 


29.2 


35.6 



Percent 
55.3 
50.7 
47.7 
44.7 
42.8 
39.9 
37.1 
34.5 
32.4 



I Net worth plus total debt, excluding accrued expenses. 
> Averages of annual ratios. 

Source:; Statistics of Income. 

It can be seen from the accompanying table 60 which presents the 
ratio of fLxed assets to invested capital, that the Standard Statistics 
average for all 400 companies is about 56 percent over the period. 
This is some 6 percent higher than the corresponding ratio for all 
manufacturing corporations, reported in Statistics of Income. This 
difference is not very large, to be sure, but contrary to differences 
between the sample and the universe in the case of the other, ratios 
examined, it is not explained by the size differences in the corporations 
covered. The Standard Statistics sample is limited almost entirely 
to the large corporations.^ However, a break-down of the fixed assets 
to invested capital ratio for all manufacturing corporations in the 
Statistics of Income tabulation reveals that the large companies have 
a smaller ratio than the small ccmipanies. The ratio, in fact, falls 
consistently with asset size from tlie smallest to the largest asset 
classes. It is about 66 percent in the zero to $50,000 asset class, and 
slightly more than 48 percent in the $50,000,000 or over asset class, 
on the average over the entire period 1931-36. Therefore, one must 
conclude that the capital structures of the corporations in the Stand- 
ard Statistics composite provide f-or less of the permanent working 
capital than those of the Statistics of Income tabulations for aU 
corporations. That is to say, there is more harmony between the 
amount of fixed assets and invested capital for the large corporations 
in the Standard Statistics sarnple than there is in the Statistics of 
Income universe. These corporations in the Standard Statistics 
sample do not seem to be so prone to using invested capital as working 
capital. 

• This discrepancy is even more striking when It is recalled that the concerns in the Standard Statistics, 
sample and in the large asset classes of Statistics of Income must be, to a great extent, identical. 



118 



CONCENTRATION OF ECONOMIC PpWER 



Tabbe 60. — Ratio of fixed assets * to invested capital^ for Standard Statistics composite 
O) b99 corporations,^ by industry and by periods 1927-29, 1930-33, 1934-38, and 
1927-38 



Industry- 



Number 
of com- 
panies 



1927-28 



1930-33 



1934-38 



1927-38 



Advertising, printing, and publishing 

Automobiles and trucks 

Automobile parts 

Autorhobile tires 

Beverages 

Building and real estate 

Chemicals, fertilizer.'. 

Containers 

Electrical equipment and radio 

Food products 

Household products 

Leather shoes 

Machinery 

Medicine, drugs... 

Metals.. 

M iscoUaneous securities ^.. 

Office and business equipment 

Oil producing and refining 

Paper and paper products 

Railroad equipment 

Shipping and shibbuilding 

Steel and iron 

Sugar producing and refining 

Textile and apparel 

Tobacco products 

Mainly manufacturing 

All other ccmpanies 

All companies 



Percent 
32 
42 
50 
37 
19 
60 
43 
67 
21 
53 
47 
24 
32 
13 
65 
54 
21 
65 
82 
53 
63 
71 
51 
40 
11 



Percent 
33 
40 
53 
45 
15 
61 
46 
69 
23 
54 
52 
25 
33 
16 
73 
55 
27 
69 
76 
59 
67 
76 
55 
45 
10 



365 
34 



399 



58 



Percent 
31 
39 
45 
46 
19 
59 
47 
64 
23 
48 
49 
25 
32 
18 
70 
55 
34 
68 
73 
62 
63 
75 
59 
46 
9 



56 



Percent 
32 
40 
49 
44 
18 
60 
46 
66 
23 
51 
50 
25 
32 
16 
70 
55 
29 
67 
76 
59 
64 
74 
56 
44 
10 



56 



1 Net property account. 
' Funded debt plus net worth. 

3 The sample is composed of 400 corporations, but it was impossible to compute this ratio for one of them, 
Oppenheim Collins Store. 

Source: Standard Statistics. 



As far as the trends are concerned, there is little to choose between 
the Standard Statistics and the Statistics of Income tabulations. 
The ratios for both sets of data rise from the prosperity to the depres- 
sion period, and fall again from the depression period to the recovery 
period. 

There is a rather persistent, but not particularly spectacular, 
difference in the ratios for the different industries covered by the 
Standard Statistics composite. The lowest ratio of fixed assets to 
invested capital is found in the tobacco group, with 10 percent. The 
highest is in the paper products group, with 76 percent. The other 
industries are tolerably evenly spaced between those two extremes. 
Others in the low group are medicines, with 16 percent; beverages, 
with 18 percent; and electrical equipment and radios, with 23 percent. 
Others in the high group are steel and iron producers, with 74 percent; 
metals, with 70 percent; oil producers, with 67 percent; and container 
manufacturers, with 66 percent. This table serves to illustrate the 
striking fact that four-fifths or more of the working capital is con- 
sidered permanent by some industries. The tobacco group, par- 
ticularly, apparently relies on invested capital for the bulk of its 
working capital. 

Other minor industrial differences in the trend of this ratio are to 
be observed. The ratio does not seem to vary significantly over the 
period covered by the Standard Statistics data. Moreover, although 



CONCENTRATION OP ECONOMIC POWER Hg 

it is true that the ratio is higher in the depression period for all 400 
companies, the same trend is not observed in all the industrial groups. 
Eleven of them follow the pattern for all 400 companies; but 10 of 
them, instead of increasing and then falling, continue to increase over 
the entire period, while 3 of them actually decline over the period, 
and a; final one has a smaller figure for the depression years than for 
any of the other periods. This last-mentioned group comprises 
beverage manufacturers. Those with the declining ratios are tobacco 
companies, paper products manufacturers, and auto and truck 
manufacturers. The fact that the tobacco manufacturers have a 
decreasing ratio merely adds to the surprise occasioned by the fact 
that their ratio is also the smallest of any of the industrial groups 
covered in the Standard Statistics sample. They are not only devot- 
ing a large amount, relatively, of their invested capital to working 
capital, but are also increasing the proportion. 

Plant-expansion policies. 

A question frequently asked by persons interested in corporate 
finance concerns the responsiveness of a company's investment in 
fixed plant and equipment to trend in volmne of business. One of the 
arguments advanced in favor of the imdistributed-profits tax was that 
corporate managers were oftentimes heedless of the dictates of market 
demand and would expand their plants in the face of an obviously 
declining sale of their products. The tax, it was argued, would pre- 
vent such expansion being made by means of retained earnings, and 
require the corporate managers to submit their case to the judgment 
of the capital market. 

A possible method of analyzing the expansion of particular com- 
panies is to compare the trend of sales with the trend of the fixed 
assets account over a long period of time. This could be done to some 
extent with the material available on the Standard Statistics identical 
sample of 400 corporations covering the years 1927-38. The ma- 
jority of these corporations did not report sales figures for the entire 
period, so the analysis was limited to the 175 companies which pro- 
vided the necessary data for at least 10 of the 12 years. The method 
used in ascertaining the trends of the sales and fixed-assets items for 
each of these companies was that of so-called semi-averages; that is, the 
sum of the figures for the last 6 years was divided by the sum of the 
figures for the first 6 years, separately for the sales and net property 
accomits, for each company.^" 

In order to attenuate some of the more obvious crudities of the 
method used, only 5 classes of trends are distinguished: An increase 
or decrease of 15 percent and more, an increase or decrease of 5 to 
15 percent, and stationary (defined to be a change of less than 5 per- 
cent either way). The distribution of the 175 companies into these 
classes is shown in table 13. 

Of the 175 companies in the sample, 56 showed a decrease of more 
than 15 percent in both the sales and property accounts during the 
latter half of the 12-year period as compared with the first half, while 
only 19 companies registered a corresponding 15-percent increase. 

"The year 1932 was considered tbe end point of the first period, whether sales were reported by the com- 
pany in question for 10, 11, or 12 years. If sales were given only for 10 or 11 years, the figures for the first half 
and second half were reduced to a common basis bef jre computing the percentage change in the average 
standing. Such a crude method of computing the trend was necessitated by the fact that a rough idea of the 
general movement of each of 350 series was required. 



120 



CONCENTRATION OF ECONOMIC POWER 



This illustrates the fact that the latter half of the period 1927-38 
was not a period of expansion. At the other extreme, 3 companies 
had a 15-percent and more increase in property account in the face of 
a 15-percent and more decrease in sales, while 13 companies had a 
15-percent and more decrease in property concurrent with a 15-percent 
and more increase in sales. If the two classes of increase and de- 
crease are combined, 87 firms fall in the group having significant 
decreases in both property and sales, 25 ui the group having significant 
increases in both items, 23 in the increasmg sales-decreasing property 
group, and 10 ui the decreasing sales-increasing property group. Of 
the remainmg companies, 18 had a stationary trend, i. e., less than 5 
percent in either direction, in the property account, while 14 had no 
significant change in the sales account. Included in these two groups 
were two companies which 'exhibited stationary trends in both items. 

Table 61. — Cross classification of trend ' of sales with trend ' of net property account 
for sales reporting companies in Standard Statistics sample of 175 companies, 
1927-38 ■ 



Trend ' of property account 



Decrease of 15 percent or more 

Decrease of 5 to 15 percent 

Stationary ^ 

Increase of 5 to 15 percent 

Iircrease of 16 percent or more- 
Total 



Trend of sales > 




Decrease 
of 5 to 15 j 
percent | 



Station- 



Increase 
of 5 to 15 
■percent 



20 



Increase 
of 15 per- 
cent or 
more 



Total 



I Computed by the method of semiaverages: Divide average of items for 1933-39 by average of items for 
1927-32 to arrive at percentage change. These tabulations were done at Income Tax Study, Philadelphia. 
» Implies a change of less than 6 percent either way in the averages for the 2 halves of the period. 

Two groups of companies in this tabulation merit particular atten- 
tion since tlieir trends were not what one might have expected. The 
13 companies whose sales increased m.ore than 15 percent over the 
period while the property account decreased a corresponding amount 
constitute a group which withlield indicated plant expansion for some 
reason or other. TLe trends imputed to most of these companies, 
moreover, are not misleadhig, but in some instances can be traced to 
unusual influences. The 15 percent and more upw^ard trend of sales 
for Otis Elevator and Melville Shoe was apparently due to expansion 
through the acquisition of new companies. The sales increased 
although the property account did not, the increased assets from the 
acquisitions appearing in som.e account other than property. In 
another case. Yellow Truck Corporation, the unusual trend resulted 
from certain intercompany dealings between subsidiary companies. 
In the case of Park & Tilford, the sharply increased sales were due to 
the special circumstance of prohibition repeal. U. S. Freight Co. 
showed an increased-sales, decreased-property relationship by droppmg 
from their statements certain of their inactive lines. At the other 
end of the table are 3 < orporations in which a downward trend of 
more than 15 percent in sales is matched by a correspondingly large 
increase in the property account. For 1 company in this group, 
Hecla Mining, this was due to a change in account classification. The 






CONCENTRATION OF ECONOMIC POWER ^21 

item "ore reserves" did not appear in the property account until 
1933. Anaconda Copper, another company in this group, increased 
its property account more than twofold in 1929 by acquiring substan- 
tial interests in other mining companies. The trend of sales did not 
show a corresponding jump. For the last company in this group, 
Standard Oil of New Jersey, the unusual change in the sales-property 
relationship seems to be due to certain parent-subsidiary transactions. 

In addition to the limitations outlined above, an analysis of this 
type has other characteristics which impair its validity. The period 
studied, 12 years, is not long enough for a completely satisfactory 
analysis of trends. Moreover, the acute depression which occurred 
during this period may color the results somewhat. In addition, the 
statistical technique employed— the method of semiaverages — has 
serious defects, due to its failure to eliminate cyclical fluctuations 
from the trend. A further limitation in studying this subject is due 
to our inability to measure the effect of technological improvements on 
industrial expansion. Finally, except for such unusual circumstances 
as the repeal of prohibition, there are changes which result solely from 
different accounting procedures, examples of which have been pre- 
viously given. 

Despite these limitations, the broad conclusions concerning the 
expansion policies of these 175 companies during successive periods 
of prosperity, depression, and recovery, as drawn above, are probably 
tolerably accurate. Although each firm in the sample of 175 deserves 
particular case-study treatment before appraising its expansion 
policy, it would seem, on a purely statistical basis, that the bulk of 
them were fairly conservative. 

Like the working-capital analysis, this description of the fixed- 
capital position of American manufacturing corporations has not been 
calculated to uncover weaknesses in their financial structure which 
could be set forth as causes of the great depression or which could be 
cited as evidence calling for remedial legislation. The aim has been 
merely to set forth some of the financial characteristics of American 
manufacturing corporations, and to point out how these characteristics 
have varied over the business cycle, among industries, and between 
large and small corporations. 



CHAPTER VI 
SOURCE AND DISPOSAL OF CORPORATE FUNDS 

A device for analyzing financial statements which has been largely 
ignored by economists mi til recently is the source and disposal of funds 
statement, sometimes referred to as a statement of funds and their 
application. Such a statement is an outgrowth of the comparative 
balance sheet showing increases and decreases in assets, liabilities, 
and net worth between two dates. In the source and disposal of funds 
statement, these increases and decreases, together with certain other 
items of information, are arranged in such a manner as to show how 
the financial condition of the business has changed during the period. 
That is to say, such a statement traces the flow of funds through an 
enterprise. 

The financial studies which have used this device have been few. 
Although accountants have long been famihar with such a flow of 
funds statement,^ and although some large companies ^ have included 
such statements in their annual reports, the analytical device does not 
seem to have received much popular attention until Alexander Sachs 
used it late in 1937 when he sought to track down the causes of the 
recession.^ His analysis is hmited to a small sample of companies, 
numbering 16 in 1936-37. This approach has since been taken up 
by the Board of Governors of the Federal Reserve System and has 
been used by the S. E. C in testimony presented at hearings con- 
ducted by the T. N. E. C. Moreover, the National Bureau of 
Economic Research is planning to employ this technique in its pro- 
posed study of the changing financial requirements of American 
enterprise. 

The utility of the source and disposal of funds statement is apparent 
at first glance. It tells, for a given time period, from what sources 
the cash funds of an enterprise are derived, and what use is made of 
these funds. If, for example, a given firm is building up inventory, 
such a statement will tell not only that inventory is piling up but also, 
caeteris paribus, how the company is getting the funds tp accumulate 
this inventory. These funds, for example, may be derived from 
profits, or from liquidation of receivables, or from an increase in 
current liabilities, and so forth. A picture of the flow of business 
funds gives the business-cycle analyst one of his best clues for singhng 
out the particular characteristics of industrial operations which are 
to be found in the different stages of the cycle. The source and 
disposal of funds statement is not the whole picture, but it is an 
important and hitherto neglected part of the picture. 

'The standard accounting text rarely devotes more than a few pages to it, however. H. A. Finney's 
Principles of Accoanting is one exeeption. 

' E. g., United States Steel. 

» Sachs' analysis is summarized in The Annalist, January 14, 1938, pp. 35 and 36, and presented more 
fully in Corporate Finance and Taxation, Financial Management Series No. 15. The title is suggestive: 
'The Financial Dynamics of Recovery Since 1933 and the Latest Constriction Phase in Capital Flow." 

123 



124 CONCENTRATION OF ECONOMIC POWER 

The most serious objection to this type of analysis stems from the 
fact that unusually complete financial statements are required for 
the construction of a source and disposal table. The account on 
which particular detail is most urgently needed is surplus, and it is 
precisely this account on which details are most lacking. Not until 
1934 when the S. E. C. regulations for financial statements became 
effective did most companies publish sm"plus reconciliations adequate 
for a statement of funds and their application. 

As already indicated, the Statistics of Income and Standard 
Statistics compilations are.inadequate for this purpose. In the former 
compilations, the debits and credits to the surplus account are not 
even mentioned, let alone detailed. Were the companies covered in 
each pair of years identical, one could compute the change in the 
surplus from one year to another, ascertain how much of the change 
was due to business savings or losses, and then surmise how much 
must have been due to the net effect of write-ups, write-downs, and 
appropriations to and from surplus. The fact that the Statistics of 
Income compilations for successive years do not cover the same 
corporations, however, makes even this method of finding the net 
debit or credit to surplus unsatisfactory. In the latter compilations, 
of the Standard Statistics Co., we are dealing with an identical 
sample, and the totals of the debits and credits to surplus are given. 
But no break-downs of the totals are made so that, for purposes of a 
source and disposal of funds statement, we are little better off than 
in the case of the Statistics of Income compilations. 

In the composite tables covering the samples of smaU manufacturing 
corporations, an attempt was made to reconcile the change in the 
surplus for each retiim. This attempt was not always successful, but 
in most cases it was possible to trace the noncash debits and credits 
carried to surplus to the proper asset or liability account. Two broad 
categories of write-ups and write-downs taken to surplus are dis- 
tinguished in the small corporations study: those to the property 
account, and those to all other accounts. The latter category is 
further broken down by means of a special tabulation which shows 
each account undergoing a reyaluation. Such revaluations include, 
of necessity, errors made on the returns by the taxpayer, and in some 
cases, adjustments forced upon the taxpayer by internal revenue 
agents. The fact that the samples covered only small corporations 
was favorable for a source and disposal analysis, since such corpora- 
tions are not in the habit of making extensive revaluations of their 
balance sheet accounts. That is to say, the problem of reconciling 
the surplus changes for the small corporations tabulations was less 
acute than that for the Standard Statistics tabulations would have 
been, or than that for the S. E. C corporations actually was. 

Source and disposal statements in the present report are derived 
from two separate sets of data, the one covering small manufacturing 
corporations and the ot^er covering large manufacturing corporations. 
Those covering the small corporations are derived from proposal 14, 
and cover identical samples in five different industries. One sample 
covering five industries extends over the years 1926-36, and therefore 
permits source and disposal statements for each of the 10 years 1927- 
36. Another sample covers five industries over the years 1930-36, 
-and therefore permits source and disposal statements for each of the 



CONCENTRATION OP ECONOMIC POWER 125 

6 years 1931-36. The industrial distribution of companies in these 
two identical samples of small corporations follows: 





Years covered 




1927-36 


1931-36 


Bakeries 


81 
46 
66 
70 
118 


27 


Men's clothing 


27 


Furniture 


28 


Stone and clay _. 


30 


Machine tool..- 


23 






Total 


381 


135 







The data on large corporations based on the S. E. C. reports cover 
47 industries, including 525 manufacturing companies. The years 
covered by these S. E. C. statements are 1934-37, permitting, in most 
instances, source and disposal statements covering the years 1935-37. 
Financial data for 1934 are not available for some industries, per- 
mitting source and disposal statements for these groups only for 1936 
and 1937. Financial data covering 1938 are available for certain 
other industries, allowing source and disposal statements for these 
firms to be carried through that year, 

DERIVATION OF SOURCE AND DISPOSAL STATEMENT 

The principle underlying th^ source and disposal of funds statement 
is relatively simple. The object is to spot those changes on the 
balance sheet which represent cash income or outgo. In accordance 
with accountmg principles, and barring account revaluations and 
mere bookkeeping entries, the following statements hold: 

1. Increase in an asset represents disposal of funds. 

2. Increase in a liability represents a source of funds. 

3. Decrease in an asset represents a source of funds. 

4. Decrease in a liability represents a disposal of funds. 

In practice it is convenient, first, to record the changes over a given 
period in all the balance sheet accounts except surplus; second, to 
mtroduce as a substitute for the change in surplus the net income 
after cash dividends and the account revaluations and other noncash 
debits and credits; and third, to adjust the appropriate asset accounts 
(particularly land, plant, and equipment) for revaluations charged to 
income (in this case, depreciation and depletion expense). Once this 
last type of adjustment has been made to the asset account, of course, 
the charge to income has to be put on the source side of the tabula- 
tion (i. e., in effect, added back into income). 

The problem of net versus gross, so disturbing in many statistical 
compilations, runs throughout the source and disposal statement. 
The fact that the items are net sometimes has the effect of concealing 
certain phases of the flow of funds which may or may not be significant, 
depending on the purpose of the particular investigation. The 
net-income item provides an interesting illustration. There are at 
least three ways in which it can be represented: (1) Net after cash 
dividends, when it corresponds to the item of business savings; (2) 
net before dividends, when it is necessary to include cash-dividend 
disbursements as a disposal of funds; and (3) net after dividends and 



126 CONCENTRATION OF ECONOMIC POWER 

including depreciation expense. The first and third alternatives 
are followed in the present report, but there is much to be said for the 
second. The third alternative is more a matter of account classifica- 
tion than a problem of net versus gross (cf. infra). The funded-debt 
account is another illustration. If several firms are being considered 
in the aggregate, one has the choice of presenting either the difference 
between the funded-debt increases and decreases or the sum of the 
increases on the source side and the decreases on the disposal side. 
Both alternatives have their particular uses. In the present report, 
the former is followed, but for the S. E. C. sample the numbers of 
firms showing increases and decreases are given. The other items on 
the source and disposal statement may be similarly subjected to 
alternative treatment, and care must be exercised by the particular 
investigator to choose wisely from among these possibilities. 

Closely related to the net versus gross problem is another arising 
out of the various account classifications which may be employed. 
The range of the decisions which may be made on this particular 
question is extensive, being limited, on the one side, by the fineness of 
the account classification in the original source material and, on the 
other side, by the obvious identity of total source and total disposal of 
funds, which is not a very revealing comparison. Between those two 
extremes the decisions must be made with the aim of revealing with 
all possible simplicity those aspects of the flow of funds most germane 
to the problem under consideration. 

In the source and disposal statements covering the small manufac- 
turing corporations, 8 balance-sheet and 3 income items are dis- 
tinguished. These items are current assets, investments, net prop- 
erty accounts, other assets, current liabilities, funded debt, other 
liabilities, capital stock, dej^reciation, net income before dividends, 
and cash dividends.* In addition, current assets and liabilities are 
broken down into their respective components. In the case of the 
large corporations covered by the S. E. C. report, detailed source and 
disposal tables for 6 of the industries are presented here. These 
source and disposal tables cover essentially the items listed above. 
Summary tables for all 47 industrial groups of these large manufac- 
turing corporations list the principal items of disposal of funds. In 
these summary tables, depreciation is combined with net income after 
dividends to give a source of funds labeled "earnings." Funded 
debt and capital stock are joined into "capital markets"; other assets, 
other liabilities, investments, and the residual are lumped into an 
"other" category. 

The meanings of the various accounts used in tl^e S. E. C tabula- 
tions covering large corporations are sufficiently well known that 
their elaboration here is unnecessary. In the case of the small cor- 
porations, explanation of the definitions attaching to the various 
items can be found by reference to Appendix F. 

The time period to be covered by the source and disposal table 
constitutes another methodological problem whose solution depends 
upon the purpose for which the analysis is being made. It might be 
desirable to have the time period cover anywhere from 1 month up 
to several years. In the present instance, the only choices available 

< stock dividends are excluded, so far as possible, from the item labeled "cash dividends." Due to incom- 
plete reporting, however, it cannot be said that the dividend item is free of all stock distributions. 



CONCENTRATION OF ECONOMIC POWER 127 

are between 1 year and a group of years, since interim statements 
for the corporations in the samples are not generally available. A 
source and disposal statement covering an entire year is going to 
conceal certain sources, for example, which were canceled out by a 
corresponding disposal during the year; and, similarly, it will conceal 
certain disposals which were canceled by a corresponding source 
during the year. Take the following illustration: In February a 
corporation goes to the bank for a 6-month loan of $100,000 for work- 
ing capital purposes. At the end of 6 months the loan is repaid. 
That transaction, which may have been a very significant source of 
funds for the corporation, will not appear on a source and disposal 
statement covering a time period extending over the calendar year. 
Since a year is still the most common time period for financial state- 
ments, the present report has followed the policy of giving source 
and disposal statements covering 1 year rather than a group of years. 
It is not to be denied, however, that a statement covering several 
years would be significant. 

Many other problems of a theoretical as well as methodological 
nature arise in the construction of a flow-of-funds tabulation. The 
question of inventory valuation is one of the most difficult theoreti- 
cally, but the amount of adjustment possible in practice is so small that 
the whole matter may be ignored in the present instance. Consider- 
able influence in the flow-of-funds tabulation is exercised by the acquisi- 
tion of subsidiaries and by the treatment of subsidiaries in the financial 
statements. Over a long period this problem may become acute. 
In the present analysis reliance has been placed on the comparability 
of the S. E. C. compilations. The number of companies covered 
precluded detailed adjustments on this score, but it is not believed that 
the consequent qualifications on the results are particularly serious. 

The source and disposal statements for the small manufacturing 
corporations were deri/ed from composite tables available in work- 
sheet form at the Income Tax Study in Philadelphia. After the bal- 
ance sheet changes over the respective years had been entered on the 
source and disposal forms, all of the noncash debits and credits — that 
is, the surplus adjustments — which could be singled out, were can- 
celled against the changes in the appropriate balance sheet items. 
The general procedure followed for the small corporations was essenti- 
ally the same as that followed for the large corporations, which is 
described in some detail in Appendix E. The proposal 14 tables basic 
to this analysis of small corporations are published in Appendix F. 
There are a few minor discrepancies between the source and disposal 
tables presented in this chapter and the basic tables in Appendix F, 
due to subsequent revisions of the latter. 

SAMPLE OF LARGE MANUFACTURING CORPORATIONS, 1935-38 

The analysis of the fiow-of-funds patterns for the 525 S. E. C. 
registrants will be carried out along two broad lines. In the next sec- 
tion the detailed statements for six industries— steel, oil, baking, tool, 
brick, and clothing — will be surveyed. In the following section the 
principal items of source and disposal for all 47 industries will be 
presented, industrial differences singled out, and the broad flow-of- 
funds pattern for these 525 registrants indicated. 



228 CONCENTRATION OF ECONOMIC POWER 

Detailed statements for six industries. 

The six aforementioned industries were selected for special treat- 
ment because two of them — steel and oil — represent what may be 
called heavy industry. The other four — baking, tool, brick, and 
clothing — are the nearest available approach to the five mdustries 
covered by the small manufacturmg corporations sample. Unfor- 
tunately no counterpart for the furniture industry is available among 
the S. E. C. reports. 

The source and disposal statements comprised by tables 1 to 6 have 
been developed on special work-sheets, a copy of which appears as 
Form A in appendix E (in columns 5 and 6). Dollar amounts (in 
thousands) and percentages of total are given for each of 11 source 
and disposal items. In addition, a break-down of the dollar amounts 
for two of these items— rcurrent assets and current liabilities — is 
presented on the bottom of the table. 

Twelve largest steel producers. — Source and disposal of funds state- 
ments for 12 steel producers with assets over $100,000,000 each are 
presented for each of the years 1935-38 in table 62. An increase iii 
current assets, largely cash, receivables and inventory, accounted for 
one-half of the disposals in 1935, capital expenditures of $118,000,000 
making up most of the balance. Depreciation charges equivalent to 
the capital expenditures provided the bulk of these funds, the capital 
markets and an increase in current liabilities (due both to banks and to 
trade) constituting the remainder. The working-capital break-down 
reveals that marketable securities were also liquidated — presumably 
to build up the other current items. Four companies accounted for 
the aggregate funded debt increase; the other 8 actually had modest 
decreases in this item. 



CONCENTRATION OF ECONOMIC POWER 



129 



p^^ 



00 Cl C^ CC o 



»o coo '^ai 

OS iO 00 <-H 



I 00 r~ 

MO 



S8 



Ss 



c»oo 



e5t<3 ri 



N — Ot^ 

i-< 00 00 r>. 



a 



(iiS 






£8 






t* C^CQOl COOi 
i-H O CD CO t>. — < 

^ 0> ^ CO CO 



»-< CO CO »c M 
-^ »OCO CO w 
OCOCO «D — < 



^8 







.■» ■ 




iss i 


;§ i ; : 


















i'^ i 





liis 



M "*2' 



S?co 



■-lOtO 



ss? 






■^ a'" 






•So; 



^ 



2 a o a S~13 "S3 

5 StS 3 aS as a; 3 oj 
SiJOUP^OOPmrt 



-? 0) S 4* « O 2 



o M^ ■£ "u S 2 « o 2 

E- .SS5S>;5o85 

o 



■y a 

as 



130 CONCENTRATION OF ECONOMIC POWER 

In 1936 the flow of funds shifted sHghtly. Capital expenditures 
of $196,000,000 were the principal application, comprising about a 
half of the total, while current assets, due to increases in cash, receiv- 
ables, and inventories, comprised a fourth. The source pattern was 
similar to that for 1935, depreciation constituting a third rather than, 
a half of the total. The sum of depreciation and net income approxi- 
mately equaled capital expenditures. Six of the firms registered all 
the increase in funded debt, the other six actually showing slight 
decreases in this item. 

The picture changed still further in 1937. Capital expenditures of 
$335,000,000 constituted 81 percent of the disposals in that year, and 
current assets only an eighth. The source pattern is still relatively 
unchanged, the only shift this year being the increased importance of 
net income. The working capital break-down reveals a sharp increase 
in inventories in this year, combined with a paying off of current 
accounts. This was presumably financed in part by drafts upon cash, 
liquidation of receivables, and increases in notes payable and other 
current liabilities. The 12 companies were again evenly divided be- 
tween those increasing and decreasing their funded debt. Unlike the 
other years, however, the increases and decreases largely canceled out. 

Shifts of the disposal side continued in 1938. Capital expenditures 
of $137,000,000 were back to the 1936 proportion of one-half the dis-' 
posals, while the balance, instead of being an increase in current assets, 
was largely composed of a decrease in current liabilities and a business 
loss. A change also occurred on the source side, depreciation and 
funded debt flotations each providing a half. Although there were 
six decreases in funded debt, the five companies floating bond issues 
dominated the scene. 

The changes in the roles played by the principal items over the 4 
years are interesting. Current assets constituted a large but decreas- 
ing use of funds over the period, falling from 49 percent in 1935 to 27 
percent in 1936, 12 percent in 1937, and 8 percent in 1938. Capital 
expenditures expanded as an application of funds over the first 3 
years, rising from 43 percent of the total in 1935 to 81 percent in 1937. 
In dollar amounts this represents an increase from 118 to 335 million. 
In 1938, however, it fell back to 46 percent. Similarly, net income 
increased as a source of funds until 1938, rising from 7 percent in 
1935 to 17 percent in 1937. In 1938, however, it had become a dis- 
posal of funds, business losses comprising 17 percent of the total appli- 
cation of funds. The depreciation charge was a relatively constant 
source of funds, running around 40 percent of the total in each vear. 
In dollar figures it varied from 110,000,000 in 1935 to 152,000,000 in 
1937. The capital markets were a source of funds in each year, but 
of varying importance from year to year. Starting at 26 percent in 
1935, their share rose to 37 percent in 1936, then fell to about 24 per- 
cent ^ in 1937, and wound up the period at 54 percent in 1938 when 
$160,000,000 were obtained from the capital markets. In the first 
2 years of the period, earnings (i. e. depreciation plus net income) just 
about covered capital expenditures. In the last 2 years they fell far 
short of this goal. Over the 4 years the extent to which earnings 
covered capital expenditures fell persistently. 

' Actually something more than 24 percent, because cancelation of the 4 percent debt retirement against 
the 28-p)etcent stock flotation would decrease the total source and disposal and therefore increase slightly 
the net contribution of capital funds. 



CONCENTRATION OF ECONOMIC POWER 



131 



^S 



&E 



^ 8 



£8 



PCS 



-v^ ,-1 ^ 04 



a> ic 55 o t^ -^ o o 
lo CO «o" (>f 00 Tt*' oT 






»0 «D CO 
CCrH 









259845— 40— No.- 15 10 



ea oi-— 0.2 S 

1 g o!*j S 3 *^ OS « s « 






r-5 QJ 



TiJi: Q> *-* hi 






so 






as o 

w 3 I- 

o Stg 



03 l-i 

BS 



2" 
12: :3 






J32 CONCENTRATION OF ECONOMIC POWER 

Seventeen largest oil refiners. — Table 63 presents 1935, 1936, and 
1937 source and disposal of funds statement for 17 oil refiners, with 
producing facilities, having assets over $50,000,000 each. Capital 
expenditures of $374,000,000 constituted fully two-thirds of the total 
apphcation of funds in 1935, funded-debt retirements and current 
asset increases comprising the balance. On the source side, depre- 
ciation matched the capital expenditures while net income comprised a 
fifth of the funds. Among the working capital items, funds were 
applied to increasing cash and receivables and were obtained from 
selling marketable securities and inventory and increasing notes 
payable and other current liabilities. Eleven companies joined in 
retiring their jfunded debt, while three firms showed an increase of this 
item. 

-In 1936 capital expenditures totaling $474,000,000 played an even 
more important role on the disposal side, comprising some four-fifths 
of the total. Other liabilities made up another tenth of the applica- 
tions. The source of funds was practically the same in 1936 as it was 
in 1935. The workmg capital break-down shows that funds were 
devoted to paying off notes and derived from all the current asset 
items except receivables, and from the remaining current liability 
items. All the companies but one recorded some change in funded 
debt, but the increases and decreases largely canceled out. 

In 1937 the disposal pattern reverted back to the 1935 form, 
capital expenditures comprising three-fourths and current assets 
a fifth of the total. Nevertheless capital expenditures in 1937 were 
almost double those in 1935. On the source side the share con- 
tributed by depreciation fell to two-fifths whUe the capital markets 
entered the picture as a net source of funds producing some 18 percent 
of the total. Fimds were applied to increasing marketable securities, 
receivables, and inventory, and were derived from a draft on cash and 
an expansion of current liabilities. Funded debt flotations and retire- 
ments were again evenly divided in number of companies, but the 
former modestly outweighed the latter in aggregate amount. 

Over the 3-year period, capital expenditures were the largest single 
item on either side of the statement, comprising 67 percent of the total 
uses in 1935, 82 percent in 1936, arid 76 percent in 1937. Deprecia- 
tion was the next largest item, but over the period it declined from 
63 percent of the- total sources in 1935 to 61 percent in 1936 and to 41 
percent in 1937. The capital markets were a drain upon these cor- 
porate funds in 1935 (about 13 percent of the total), and modest con- 
tributors in the other 2 years (6 percent in 1936 and 18 percent in 
1937). Net income constituted a modestly increasing source of funds 
over the period, rising from 20 percent in 1935 to 25 percent in 1936 
and 26 percent in 1937. Earnings, (i. e., net income plus depreciar 
tion) more than covered capital expenditures in 1935 and 1936, but 
fell 10 percent short in 1937. 

E'ight large, bakeries. — Eight bakers of bread and cake are registered 
^^•iHth the S. E. C. These firms are undoubtedly the larger ones in their 
particular industry. Table 64 presents source and disposal of funds 
statements covering these eight firms for the years 1935-37. 



CONCENTRATION OF ECONOMIC I'OWER 



133 




134 CONCENTRATION OF ECONOMIC POWER 

On the disposal side, capital expenditures comprised about a half of 
the total in 1935, funded debt retirements making up most of the 
balance. Depreciation provided two-thirds of the funds, and current 
assets about an eighth. An increase in notes payable and a draft 
upon cash provided the bulk of the working capital funds. Six of the 
companies made retirements of their funded debt. There were no 
bond flotations. 

In the following year capital expenditures and bond retirements 
still figured prominently on the disposal side (a half and a third of the 
total, respectively) while increases in current assets took an eighth of 
the funds. Depreciation again contributed two-third of the funds. 
The fourth contributed by current liabilities is composed partly of an 
increase in bonds maturing within the year. In actuality, therefore, 
th"e figm'es for funded debt retirements are overestimated as far as the 
companies involved are concerned, but not as far as the funded debt 
accounts themselves are concerned. In effect, this picture indicates, 
merely as a result of account transfers that some of the bonds were 
retired by an increase in current debt. Four companies revealed a 
decrease in funded debt and one an increase. 

By the next year, 1937, the source and disposal pattern had shifted 
significantly. Although capital expenditures still loomed largest on 
the disposal side — being two-thirds of the total — current liabilities 
were reduced, taking the bulk of the remaining funds. Depreciation 
again constituted the bulk of the sources, about two-thirds, but other 
liabilities provided most of the balance. Drafts on cash and increases 
in notes payable helped finance expansion of receivables and inventory. 
Current liabilities were again impregnated with some funded debt 
maturing within the year. The aggregate effect of the funded debt 
retirements made by five firms was largely counteracted by the bond 
flotations of another company. 

Over the period capital expenditures were a consistently large 
disposal of funds, running 52 percent in 1935 and 1936 and 62 percent 
in 1937. Similarly, depreciation was the largest contributor, provid- 
ing 67 percent of the funds in 1935, 59 percent in 1936, and 65 percent 
in 1938. The capital markets, instead of being source of funds, were 
actually net drafts on resources in all three y^ars: 44 percent in 1935, 
33 percent in 1936. and about 2 percent in 1937. The sum of net 
income and depreciation matched the capital exnenditures in each 
year of the period; in fact, in the first 2 years it was considerably 
larget. 

Seventy-nine toot manufacturers. — Table 65 presents source and 
disposal of funds statements for 1935-37 covering 79 manufacturers 
of industrial machinery, tools, parts, and equipment. This industrial 
group is supposed to be particularly sensitive to cyclical influences. 

Current assets accounted for more than half of the total use of 
funds in 1935. Capital expenditures were less than a third of the 
total, and stock retirements and reacquisitions an eighth. On the 
source side three items figure prominently : depreciation, more than a 
third; current liabilities, a third; and net income, a fourth. The 
expansion in ciu'rent assets was largely in cash, receivables, and 
inventory. This was financed in part by sale of marketable securities 
and an increase in current debt. The funded debt decreases totaled 
almost twice the increases. 



CONCENTRATION OF ECONOMIC POWER 



135 






p;8 



^E 



«-^ -H IOC 



1^-^ 



00 c^ ooc^ oo t^ 
o CM (£> eo CO CO rH 

<M 00 CO 00 CO •-' '^J* 



C^ O 1-1 Tf (M iC <-t 



8-" 



PhS 



(N ii-H C^ 



OlOO 
-^ 00 
fC05 






:s|.il 



— lO o 
c^ >oco 

.-< lO o 



(MC^OCl 



3 •" ^ 3 ^ ^ C3 



^ O 

■a o 



•§5 



; as 



11.1^ 

' (d 0^ d oj 



M^-£'3 o « ^ O O 1 

o 



J36 CONCENTKATION DF ECONUMIC i'OWKK. 

In the next year current assets were again the prmcipal disposal^ 
comprising almost a half of the total. Capital expenditures were 
almost a third of the total, while bond retirements (rather than stock 
retirements) constituted a fifth. The source pattern was altered by 
the entry of the stock item onto the scene: Almost a third of the total 
funds were obtained through this channel. The working capital 
break-down is also similar except that cash was drawn upon instead 
of augmented. The increases in funded debt were only nominal in 
amount. 

Current assets continued as the principal disposal in 1937, com- 
prising three-fifths of the total. Capital expenditures accounted for 
the balance of the utilization of funds. The 1937 source pattern was 
similar to that for 1936, each of four items contributing about a 
quarter: Income, depreciation, current liabilities, and bond flotations. 
The working capital pattern was back to the 1935 picture: cash, re- 
ceivables, and inventories were disposals; marketable securities, notes, 
and other current liabilities were sources. The aggregate increase in 
funded debt was four times the decrease. 

This industry is characterized by a persistently large utilization of 
funds through building up current assets. The proportions of total 
funds utilized in thu fashion were 53 percent in 1935, 43 percent in 
1036, and 59 percent in 1937. The only other important application 
of funds was capital expenditures, fairly stable at around a third of 
the total. Current liabilities were a persistent but slightly decluiirig 
source of funds, being 32 psrcent of the total in 1935, 31 percent in 
1936 and 23 percent in 1937. Depreciation fell off as a source of 
funds, while retained profits increased. Income plus depreciation was 
almost double capital expenditures in 1935, and considerably more 
than new plant outlays in 1936 and 1937. 

Nine brick manufacturers. — Nine manufacturers of brick and other 
clay products are covered in the source and disposal statements for 
1935-37 in table 66. 

Bond retirements and current-asset expansion were the major uses 
of funds in, this mdustry in 1935. Th^ former aggregated a third of 
the total and the latter almost as much. Third position goes to capital 
expenditures which totaled only a fifth of the applications. Two- 
thirds of the funds were contributed by depreciation, the remainder 
being split between stock flotations and current liability increases. 
Among the working-capital items, accounts payable and other current 
liabilities supplied funds, while receivables, inventory, and note repay- 
ments absorbed them. Four companies accounted for the funded- 
debt retirements, outweighing a bond flotation by one firm. 

The 1936 disposal pattern was quite different. Current assets 
figured even more prominently, usurping the role played in 1935 by 
funded-debt retirements. Capital expenditures remained stable at a 
fifth of the total disposal. The source side is similarly marked by 
elimination of the capital market's previous role. Depreciation is 
only a third of the total funds in 1936, the current debt increase 
rising to match it, while other assets netted a fifth of the funds. Cash, 
receivables, and inventories continued to expand, partly through an 
increase in payables. The- five companies decreasing their fundied 
debt failed to make this item a significant application even though 
there were no ofFsettiug increases. 



CONCENTRATION OF ECONOMIC POWER 



137 



(i;8 



Tt;^ tO(N to 

OOCOt-c 



leo 


8S \ i 




OS e^ . t 










iVi 









£s 






-§5 



" OJ M (fl M'3 

o ^ a a M M 

3*3 ca « 3 (O 






^•2 



138 



CONCENTRATION OF ECONOMIC POWER 



The disposal of funds in 1937 was evenly divided between capital 
expenditures and current assets. Depreciation provided a half of 
these funds, and stock flotations a quarter. The increase in cash and 
inventories was matched in part by a Hquidation of receivables. 

Over the 1935-37 period current assets were the largest application 
of funds, running 29, 67, and 46 percent of the total in each of these 
3 years, respectively. Capital expenditures were an increasing dis- 
posal, standing at 19 percent in the first 2 years and 50 percent in 1937, 
The largest and most consistent provider of funds was depreciation, 
totaling 59 percent in 1935, 35 percent in 1936, and 49 percent in 1937. 
The capital markets were a net drain (more than 10 percent) on the 
funds of these corporations in each of the years 1935 and 1936, and a 
major source of funds (25 percent) in 1937. "Retained profits were also 
a drain on funds in 1935 (6 percent) and a contribution in 1936 and 
1937 (6 and 9 percent, respectively). Tn the first 2 years of the 
period, earnings — i. e., income plus depreciation — were more than 
double capital expenditures; in 1937 they were still significantly 
larger. 

Sixteen clothing manufacturers. — The S. E, C. industrial category 
labeled "manufacturers of apparel other than hosieiy and footwear" 
is comprised largely of men's clothing manufacturers. Source and 
disposal statements for the 16 registrants in this group are presented 
in table 67. Because the 1934 data for all 16 of the companies are not 
available, the statements in table 67 cover only the years 1936 and 
1937. 



Table 67. — Source and disposal of funds, 16 manufacturers of apparel other than 
hosiery and footwear, based on S. E. C. census of American listed corporations, 

1936-37 1 

[Unit: $1,000] 





1936 


1937 


Account 


Source 


Disposal 


Source 


Disposal 




Amount 


Per- 
cent 


Amount 


Per- 
cent 


Amount 


Per- 
cent 


Amount 


Per- 
cent 








$5, 015 
2,114 


60 
26 






$1, 499 


31 








$738 


15. 






$115 


1 


1,480 
52 

800 
30 

912 


31 




519 


6 






1 




4,768 
72 
196 


57 
1 
2 






16 












1 


other liabilities - - . 










18 




680 


8 


2,792 
1,091 


58 
22 






1,036 
2,062 

76 


13 

25 

1 












78 


2 








230 


5 














Totals 


8,325 


100 


8,328 


100 


4,851 


100 


4,851 


100 






Working capital .. 






247 








2,299 




Cash 


157 
213 






50 

1,284 

626 
























2, 232 

3,075 

78 


















3,379 
80 




Other current assets 
















2,424 

835 

1,542 






1.561 
















1,060 
1,298 






































33 








3 



















« Report No. 49. 



CONCENTRATION OF ECONOMIC POWER X39 

Expansion of the current assets required two-thirds of the funds 
acquired by these corporations in 1936. An increase in investments 
(not marketable securities) took another fourth. Half the funds 
were supplied by an increase in current debt, while retained profits 
accounted for a fourth and depreciation a bare eighth. The expansion 
in current assets was largely in receivables and inventory, while the 
expansion in current debt was largely by note. Only one company 
registered a change in funded debt, and that one was a modest increase. 
The capital assets account was actually a slight source of funds in this 
year. 

The 1937 disposal pattern was quite different. Capital expenditures 
resumed their more customary role and matched the current asset 
increase by utilizing almost a third of the total funds. A decrease in 
other liabilities took a fifth. Depreciation was again only a small 
source of funds, providing hardly more than a fifth of the total. 
More than a half was procured through stock issues. Receivables 
were liquidated, notes incurred and marketable securities sold in order 
to raise funds for the purchase of inventory and the settlement of 
accounts payable and accrued liabilities. The only funded debt 
change was a decrease recorded by one company. 

Over the biennium current assets constituted the major disposal 
of funds, running 60 and 31 percent of the total in 1936 and 1937 
respectively. Capital expenditures, actually a slight source of funds 
in 1936, were 31 percent of total applications in 1937. Depreciation 
was the most consistent source, aggregating 13 percent in 1936 and 
22 percent in 1937. The capital markets, which wxre a modest drain 
on funds in 1936, became the most -important source — 58 percent of 
the total — in 1937. Net income plus depreciation naturally exceeded 
capital expenditures in 1936 (since the latter were nil) but fell a third 
short in 1937. 

Resume. — Interesting industrial differences are brought out by a 
comparison of the flow of funds pictures presented in the preceding 
six tables. 

Current assets figured as a significant application of funds, along- 
side capital expenditures, m four of these industries, steel, tool, brick, 
and clothing. They played a declming role in steel and clothing, but 
in all four groups their magnitude compared favorably with that of 
the capital expenditures. In one industiy, oil, capital expenditures 
played a lone role, largely, as a use of funds. In the remaining in- 
dustry, baking, capital expenditures were supplemented, on a sizable 
scale, by retirement of outstanding securities. Much of the expansion 
in current assets in the steel industry went into inventory, a fact 
wliich has frequently been cited by analysis striving to explain the 
1937 recession. When ranked according to the relative magnitude of 
the capital expenditure item the industries run, from high to low, as 
follows, oil (two-thirds to tliree-quarters) , bakmg, steel, tool, brick, 
and clothing (less than a third). 

. Depreciation is the most persistent source of funds, industrially as 
well as temporally. It is prominent in each of the six industries 
covered here, and ranges from about two-tliirds of the total sources 
in baking dowm to less than a quarter in clothing. In addition to the 
baking industry, it is also particularly large in brick and oil, and 
quite sizable in steel. Retained profits were a significant source of 
funds in four of the industries, tool, oil, steel, and clothing. In some 



140 CONCENTRATION OF ECONOMIC POWER 

of these groups, however, it was a disposal of funds in certain years. 
Four industry groups found the capital markets a source of funds, 
steel, clotliing, brick, and oil. However, three of these industry 
groups (steel is the exception) had a net outflow of funds into the 
capital markets in some year during the period. Current liabilities 
were a significant source of funds for one industry, tools. It was 
observed above that both the steel and tool industries expanded their 
current assets during this recovery period. Their expansion was 
financed in different ways, however. The former got its funds 
through depreciation, capital markets, and retained profits; the latter 
through depreciation, current liabilities (presumably a mixture of 
bank loans and mercantile credit), and retained profits. The greater 
accessibility of the steel industry to the capital markets is evident. 
For three of the industries — baking, tool, and brick — earnings (i. e. 
net income plus depreciation) covered or exceeded capital expendi- 
tures in each year studied. In the remaming three industries, such 
earnings covered capital expenditures in 1935 and 1936, but failed to 
do so in 1937 and (for steel) 1938. 

Principal Sources and Uses For 47 Industries. 

Detailed statements of the source and application of funds such as 
were included in the preceding section are impracticable when there 
are 47 industries to be considered, instead of 6. Such an analysis 
would not only be very lengthy, but also run the chance of "missing 
the forest for the trees." An alternative approach would be to com- 
bine the source and disposal statements of all 47 industries for each 
year, and examine the aggregate flow of funds. Such a method 
would be defensible in the case of a body of data blessed with universal 
coverage of, say, all manufacturing corporations. The present data 
covering 525 firms in 47 industries, however, is merely a sample, and 
not a judiciously selected one at that. An aggregate source and dis- 
posal statement of these 47 industries would be strongly weighted by 
the large industrial components such as steel, oil, and automobiles. 
An analysis of such a statement would contribute little that an 
analysis of the steel and oil statements had not already revealed. 
Therefore, in order to gain some idea of the flow of funds patterns for 
all 47 industries, without risking the chance of being too detailed on 
the one hand and of being too unrevealing on the other, the approach 
followed in this section will be to set forth the two largest sources of 
funds and the two largest uses of funds for each of the 47 ^ industries 
for each of the years 1935-38 in which data were available. The 
underlying data are presented in tables 68-71, inclusive. The capital 
letter "A" has been placed under the principal source and principal 
use for each industry, and the letter "B" under the next most im- 
portant (sometimes termed "secondary") source and next most 
important use. 

Of the 47 industries, 1935 data were not available for 14. The 
remaining 33 industries including 420 companies are covered in table 
68, which gives the principal sources and disposals in 1935. 

Earnings, comprising net income plus depreciation, were the prin- 
cipal source of funds for 26 of the 33 industries. Current liabilities 
were increased enough to play this role in 3 industries, food canners, 

• Based on 46 S. E. C. reports, one of which— sugar refiners— gives better coverage when split into two 
groups. 



CONCENTRATION OF ECONOMIC POWER 



141 



railroad equipment, and trucks. The capital markets provided the 
bulk of the funds only for the cigarette industry. In 2 industries, 
snuff and cereal manufactures, other liabilities played the major role, 
while a decrease in current assets provided the major part of the funds 
in the miscellaneous food group. In 14 industries current liabilities 
played the secondary role on the supply side, current assets did the 
same for 6 industries, earnings for 4 industries, and capital markets, 
investments, and other liabilities for 3 industries each. 

Of the uses of funds, capital expenditures head the list for 13 indus- 
tries. Current asset increases were the principal disposal for as many 
more industries, while the capital markets were the largest drain on 
funds in 2 industries, cement and diversified grocery specialties. Three 
industries, beet sugar, cigars, and snuff devoted the major part of 
their funds to retiring current debt. The 1935 losses after dividends 
•of cigarette companies were their principal application of funds, while 
an increase in other assets played this role for the cereal companies. 
Capital expenditures were the secondary use of funds in 16 industries, 
current assets in 6, the capital markets in 8, and current liabilities, 
other liabilities, and business losses (after dividends) in cereal, mis- 
cellaneous food, and railroad equipment respectively. 

Although net income plus depreciation was the principal source of 
funds in 26 of the 33 industries, capital expenditures were the principal 
disposal in only half as many groups. Current assets played as 
prominent a role on the application side. The conclusion is, therefore, 
that these corporations were, in general, using their funds to replenish 
or increase their working capital rather than fixed capital in 1935. 

Table 68. — Principal sources and uses of manufacturing corporation funds, by 
selected industries, based on S. E. C. census of American listed corporations — 
19S5 1 





Industry 


Num- 
ber of 
com- 
panies 


Principal sources 


Principal uses 


Earn- 
ings 2 


Capital 
mar- 
kets 3 


Current 
liabili- 
ties 


Other 


Capital 
expend- 
itures < 


Current 
assets 


Capital 
mar- 
kets 3 


Other 


1 


Steel 


12 

5 
7 
14 
9 
6 
5 

17 

9 
7 
8 
20 
61 
3 
8 

8 

4 


A 




B 




B 


A 






2 


Meat packers, over $50,- 
000,000 5 






4 


Automobile 


A 


- \ 


B 




B 


A 






5 


Tires = 






'fi 


Agricultural machinery ' 

Cigarettes 

rSugar refiners— beet- 

\Sugar refiners — cane ' 

Oil, over $50,000,000 


















7 


"a 


A 




B6 

B' 


B 
B 






A« 








AS 


8 












in 


A 

A 
A 
A 
A 
A 
A 
A 

B 


B 


B 




A 

A 
B 
A 
A 
B 
A 
A 


B 
...„.-. 

B 

A 
B 


B 




11 


Office machinery and equip- 




1? 


Cement 

Containers and closures 

Chemicals and fertilizers 




B? 
B« 


A 




14 








16 


■"b "' 


B 
B 






18 






1ft 








?0 


Bread and cake 




B' 

A« 


B 




21 


Cereal manufacturers and\ 

millers ../ 

Quarrying s 






fB8 

\A»o 


22 













' "A" denotes largest source or disposal; "B" denotes next to largest. 

2 Depreciation plus net income. 

3 Long-term debt plus capital stock. 

* Land, building, and equipment. 
« Data not available in this year. 

« Investments. 
' Current assets. 

* Current liabilities. 
« Other liabilities. 

"' Other assets. 



142 



CONCENTRATION OF ECONOMIC POWER 



Table 68. — Principal sources and uses of manufacturing corporation funds, bi/ 
selected industries, based on S. E. C. census of American listed corporations — 
iSS5— Continued 



/2 • 

EQ 


Industry 


Num- 
ber of 
com- 
panies 


Principal sources 


Principal uses 


Earn- 
ings 


Capital 
mar- 
kets 


Current 
liabili- 
ties 


Other 


Capital 
expend- 
itures 


Current 
assets 


Capital 
mar- 
kets 


Other 


' ?3 


Cigars 


10 
3 

9 
8 

7 
3 

79 
8 
4 

10 
5 

11 
9 

7 
6 
4 
3 

10 
16 
12 
9 

10 

4 

8 
12 

6 
25 
11 

6 


A 
B 






B? 

A» 






B 


A8 


?4 


SnuflE - 






B 




A ' 


25 


Meat packers, less than 
$50,000,000 « .- 












?7 


Dairy products -.- 


A 

A 

A 
A 






B' 


A 


A 
A 
A 


B 
B 




28 


Beverage manufacturers 
other than brewers and 
distillers . 




B 
B 
B 




?fl 


Sulfur— salt -.. 




B 
B 




37 


Tool manufacturers . 






88 


Paint manufacturers » 

Vegetable oils ' 






Rf) 


















40 


ToUet soap, etc 


A 




B 




B 


A 






41 


Leather tanners ' 






4? 


Shoes » 1 : 


















43 


Brick 


A 

A 
A 




B 

B 
B 




B 

B 
B 


A 

A 
A 






44 


Miscellaneous building ma- 
terial . .. . 






45 


Cotton-wool..- -- 






4R 


Rayon yarn ' 






47 


Silk and rayon ' 


















48 




A 




B 




A 




B 




49 


Apparel— not hosiery » 

M iscellaneous textiles 

Food canners and preservers . 

Chewing gum, candy,' con- 
fectionery 

Diversified grocery special- 
ties. 




fin 


A 
B 

A 

A 

B 

A 




B 

A 




B 


A 
A 

A 


"■ 




51 


B 




62 


B« 

B6 

A' 
B« 


B 

B 

A 
A 




63 






A 




54 


Miscellaneous food and re- 
lated products 






B« 


55 


Drugs and medicines 








B 




56 










57 


Paper and allied products 

Railroad equipment 


. A 


B 






A 
A 
A 


B 






58 


A ■ 
A 


B' 
B « 




BS 


5Q 


Commercial cars and trucks.. 






B 

















2 Dep'-eciation plus net income. 
« Data not available in the year. 
9 Investments. 



' Current assets, 
s Current liabilities. 
• Other liabilities. 



In 1936 data were available for all 47 industries comprising 525 cor- 
porations. Table 69 indicates the principal sources and uses of funds 
by these industries in that year. 

The 1936 picture is similar to that for 1935. Of the 47 industries, 
36 relied chiefly on earnings for their funds, 8 on an increase in current 
debt, only 2 (containers and trucks) on the capital markets, and 1 
(snuff) on a reduction of current assets. An increase in current liabili- 
ties provided the next most important source of funds for 27 industries, 
earnings for 9, the capital markets for 5, investments and other liabili- 
ties for 2 each, current assets for cane sugar and other assets for bis- 
cuits. Instead of the increase in current assets and capital expendi- 
tures comprising the principal utilization of funds in the same number 
of industries (cf. 1935 experience), the fo-rmer led the latter 2 to 1 in 
1936. Current assets were the major disposal in 30 industries, capital 
expenditures in 15. In 2 industries, cigars and hosiery, the capital 
markets provided the bulk of the funds. The secondary role was 
played in 27 industries by capital expenditures, in 11 industries bj' 
current assets, in 4 industries by the capital markets, in 2 industries 



CONCENTRATION OF ECONOMIC POWER 



143 



by other liabilities and investments, and in 1 industry, snuff, by a 
decrease in current liabilities. 

The flow of funds in 1936, it may be obsen^ed, was characterized 
even more markedly than in 1935 by an expansion in the current-asset 
item made possible by funds derived primarily from earnings and cur- 
rent debt. 

The number of industries relying in 1937 chiefly on earnings for their 
funds had decreased to 25 (see table 70). The capital markets were 
coming to play a more prominent part, with 7 industries deriving the 
major part of their funds therefrom. An increase in current debt 
played the corresponding role in 7 industries. Some liquidation of 
current assets took place since 8 industries found this their chief source 
of funds. Earnings played a secondary role in providing funds for 17 
industries, current Uabilities for 11 industries, the capital markets for 
10 mdustries, current asset liquidation for 5 industries, and sale of 
capital assets, other assets, and other liabilities for 1 industry apiece. 
In one industry, cotton and wool, liquidation of current assets pro- 
vided all the fiends. 

Capital expenditures come into their own in 1937, comprising the 
principal use of fimds in 29 of the 47 industries and the secondary 
disposition in 13 others. Current assets still constituted a major utili- 
zation of funds in 10 industries, and a secondary use in 16 others. 
Security retirements were relatively common, 7 industries finding this 
their chief apphcation of funds and 1, cigars, devoting the bulk of their 
funds to that purpose. Other items playing the role of major use were 
current habilities (3 industries), other assets (2 industries), and other 
habilities and business losses after dividends (1 industry each). 

In 1937 the building up of current assets so characteristic of the two 
earlier years slowed douii somewhat, the role of capital expenditures 
increasing. Althousrh earnings were still the most prominent source 
of funds, the capital markets became increasingly important ac 
contributors. 

Table 69.' — Principal sources and uses of manvfacturing corporation funds, by se- 
lected industries, based on S. E. C. census of American listed corporations — 
1936^ 



a 


Industry 


Num- 
ber 
of 
com- 
pan- 
ies 


Principal 


sources 






Principal uses 




"•1 

CQ 


Earn- 
ings « 


Capital 
mar- 
kets' 


Cur- 
rent 
liabil- 
ities 


other 


Capital 
expend- 
itures* 


Cur- 
rent 
assets 


Capital 
mar- 
kets' 


other 


1 


Steel 

W eat prickers, over $50,000,000. 
Automobiles 


'I 
7 

14 
9 
6 
5 
7 

17 

9 


.A. 
A 
A 
A 
A 


B 






A 
B 
A 
B 
B 
B 
A 
B 
A 

A 


B 
A 
B 
A 
A 
A 
B 
A 






2 


B 
B 
B 
B 
A 


"B't" 
B« 
B- 






4 






,"> 


Tires 






6 


Agricultural machinery.. 

Cisarettes 






7 






8 


f?He;r refiners — beet 


A 
A 
A 

A 








\Su£ar refiners -cane 










10 


Oil, over $50.000,000 


B 






B» 


11 


Office machinery and equip- 
ment 


B 




B 







' "A' denotes largest source or disposal; "B" denotes next to largest source or disposal. 

' Depreciation plus net income. 

' Long-term debt plus capital stock. 

' Land, building, and equipment. 

' Other liabilities. 

• Investments. 

' Current assets. 



144 



CONCENTRATION OF ECONOMIC POWER 



Table 69.— Principal sources and uses of manufacturing corporation funds, h/ 
selected industries, based on S. E. C. census of American listed corporations — 
1936 — Continued 



1 


Industry 


Num 
ber 
of 
com- 
pan- 
ies 


Principal sources 


Principal uses 


DQ 


Earn- 
ings 


Capital 
mar- 
kets 


Cur- 
rent 
liabil- 
ities 


Other 


Capital 
expend- 
itures 


Cur- 
rent 
assets 


Capital 
mar- 
kets 


Other 


1? 




7 
8 
20 
61 
3 
8 

10 
3 

9 

8 

7 
3 

79 
8 
4 

10 
6 

11 
9 

7 
6 
4 
3 
10 
16 
12 
9 

10 

4 

8 
12 

6 
25 
11 

6 


A 
B 
A 
A 
A 
A 

A 
A 
A 
B 

B 
A 

A 
A 
A 
A 
B 
A 
B 
A 
A 

A 
B 
A 
A 
A 
B 
B 
A 

B 

A 

A 
A 
A 
A 
A 


A 


b 






A 
B 

" b" 

A 

A 
B 


B 




14 


Containers and closures 

Chemicals and fertilizers 




A 
A 
A 
B 
A 

B 
A 
B 
A 

B 
A 

B 




16 

IS 


B 
B 


"b»" 


B 




19 








?*■( 


Bread and catee 


b" " 


B 
B 


B 




21 


Cereal manufacturers and 




T? 








W 






B' 

A' 


A 




04 


Snufl ■ 






B« 


25 


Meat packers, less than 
$50,000,000 


-— g— 

'.'.'.'.'.v.'. 


A 
B 

B 
B 
B 
B 
A 
B 
A 
B 
B 

B 
A 


A 
B 

A 
A 
A 
A 
A 
A 
A 
A 
A 

B 
A 

A 
A 

"a"" 

A 

A 

A 

B 

A 
A 
A 
B 
A 






?7 








28 


Beverage manufacturers, 
other than brewers and dis- 






•Jfl 






B< 


37 






B 
B 
B 
B 




38 








39 






» 


40 


Toilet soaps, etc .. -. 






41 




B 




42 






B 
B 

A 
B 
B 
B 
B 




43 


Brick 

Miscellaneous building ma- 
terial 






44 






4F> 








4A 


Rayon yarn 






47 




B 
B 
A 
A 
B 

A 

B 








4S 


Hosiery 


A 




4n 


Apparel — not hosiery 


B« 


fiO 


M iseeHaneous textiles 

Food canners and preservers.. 
Chewing gum, candy, con- 


B« 


B 
B 

B 

A 

"b"' 

B 

A 
B 
B 




11 






52 






63 


Diverslfled grocery special- 
ties 






54 


Miscellaneous food and re- 
lated products 




B« 


fiS 




""a" 


B 
B 




."ifi 








■i? 


Paper and allied products 






FA 


B 
B 








TO 















» other liabilities. 

' Current investments. 

' Current assets. 

• other assets. 

» Current liabUitles. 



CONCENTRATION OF ECONOMIC POWER 



145 



Table 70. — Principal sources and uses of manufacturing corporation funds, by 
selected industries, based on Securities and Exchange Commission census of 
American listed corporations — 1937 ' 



1 


Industry 


Num- 
ber 
of 
com- 
pan- 
ies 




Principal 


sources 




Principal uses 


^ O 


Earn- 
ings' 


Capital 
mar- 
kets 3 


Cur- 
rent 
liabil- 
ities 


Other 


Capital 
expend- 
itures < 


Cur- 
rent 
assets 


Capital 
mar- 
kets 3 


Other 


1 


Steel 


12 
5 
7 

14 
9 
6 
5 
7 

17 

9 
7 
8 
20 
61 
3 
8 

8 
4 

10 
3 

9 

8 

7 
3 

79 
8 
4 

10 
5 

11 
9 

7 
6 
4 
3 
10 
16 
12 
9 

10 
4 

8 
12 

6 
25 
11 

6 


A 
B 
A 
A 
A 
B 
B 
A 
A 

A 
A 

"a" 

A 
A 
A 

B 
A 
B 
B 


B 






A 
A 
A 
A 
B 
B 
B 
B 
A 

A 
A 


B 






2 


Meat packers, over $50,000,000. 
Automobiles 


A 


B'r 




B ' 


4 






B ' 


S 


Tires 


"' b" 

B 


B 

B 
A 
A 
B 


B 
A 
A 
A 
A 
B 

B 
B 
B 
B 






6 


Agricultural machinery 

Cigarettes -.. -.- 






7 






8 


f Sugar refiners— beet.-- 






ISugar refiners— cane- 

Oil— over $50,000,000 






10 






11 


Office machinery and equip- 
ment. 










12 


Cement 




B« 






14 


Containers and closures 

Chemicals and fertilizers 

Automobile parts 


A 
B 
B 


B 




A ' 


If, 




A 

A 

A 

B 
A 




IS 








B ' 


19 


Biscuits and crackers. 

Bread and cake 

Cereal manufacturers and 
millers. 


B 


A6 

B9 


B 






2(1 




B ' 


21 










A ' 


?? 






"b"" 


B 
A 




?3 


Cigars 




A 




?4 


Snuff 


A9 

A'' 

"B"r 


B 

A 
A 

A 

'"b" 

B 

A 
A 


A' 


25 


Meat packers, less than 
$50,000,000 




B 
B 

B 


B 
A 
A 
A 


B 
B 


?,7 




A 

A 

A 
A 
B 
B 
B 
B 
A 
A 

A 






28 


Beverage manufacturers, 
distillers 




?9 


Sulfur— salt. 




B' 


37 


Tool manufacturers 


B 

"a"" 




38 


Paint manufacturers 

Vegetable oil 


A 








n 




B ' 


40 






A« 






B ' 


41 


Leather tanners 


A 
B 






B 


A ' 


42 


Shoes 

Brick 


B 




A 
A 

A 
B 
A 
A 

A 
B 

A 
B 


B 
B 

B 




4.( 






44 


Miscellaneous building ma- 
terial. 

Cotton and wool 










45 




A 6 10 
B9 

A« 
Bf 




A ' 


46 


Rayon yarn 


"b " 

A 
B 
B 
B 

B 

B 
A 
A 
B 

A 
A 


A 








B ' 


47 


Silk and rayon 






B ' 


48 


Hosiery 






"a 


B 




49 


Apparel— not hosiery 


A 
"a " 






50 


Miscellaneous textiles 

Food canners and preservers. 
Chewing gum, candy, con- 
fectionery... 

Diversified grocery specialties 
Miscellaneous food and re- 
lated products 


a' 

A 
B 


A« 




B ' 


51 


A 

A 
B 






52 


B 




53 


A9 


A 

B 
B 
A 
A 
A 
A 




64 




A • 


55 


Drugs and meclcines ^.. 

Lumbar products 


B 

" A "" 

. B 








A ' 


56 


B 




B 
B 
B 






57 


Paper and allied products 

Railroad equipment.. 

Commercial cars apd tiucks.. 






58 










69 




B« 




B> 




1 









■ "A" denotes largest source or disposal; 
' Depreciation plus net income. 
' Long-term debt plus capital stock. 

• Land, buildine, and equipment. 
' Investments.. 

• Current assets. 

' Current liabilities. 

• Other assets. 

« Other liabilities. 
10 Sole source of funds. 



'B" denotes next to largest source or disposal. 



146 



CONCENTRATION OF ECONOMIC POWER 



The Securities and Exchange Coro.mission has pubhshed the 1938 
financial statem.ents for 102 corporations in 9 of these 47 industrial 
groups. In each of these industries except steel, the 1938 tabulation 
includes a slightly larger nunaber of registrants than were in the 1935-37 
statem.ents. The principal sources and uses of funds in 1938 are set 
forth in table 71 for each of these 9 industries. 

Earnings are still the dom.inant source of funds, holding first place 
in four of the industries. Current assets are a principal source in 
three industries, indicating a reversal of a tendency found in the 
earlier years, and the capital m.arkets in two industries. Earnings 
were a secondary source of funds in four industries, the capital m.ar- 
kets in three, liquidation of current assets in one, and selling of 
investments in another. 

Although capital expenditures were the principal use of funds in 
five industries out of the nine, reduction in current debt (also reversal 
of a previous tendency) ranked first in the rem.aining four industries. 
Every industry except autom.obiles devoted either the m.ajor or 
secondary portion of its funds to settlem.ent of current liabilities. 
In two industries — autom.obiles and cigarettes — the buUding up of 
current assets still constituted the secondary use of funds and in 
three other industries capital expenditures were the second largest 
application. 

The coverage of table 71 is far less adequate than that of tables 
68-70, but if the 1938 experience of these 102 corporations is roughly 
representative of the 525, then there was a m.arked shift in the flow 
of funds, away from building up working capital and toward settle- 
m.ent of current payables. The Recession of 'late 1937 seem.s to have 
led these com.panies to back-track by consolidating their working 
capital positions through contracting inventories and receivables 
which had become top-heavy. 



Table 71. — Principal squrces and uses of manufacturing corporation funds, by 
selected industries, based on Securities and Exchange Commission census of 
American listed corporations — 1938 ^ 



S. E. C. 

Report 

No. 



Industry 



Pteel - 

Meat packing ■- 

Automobiles 

Tires 

Aericultural machinery 

Cigarettes over $10,000,000 

Office machinery. 

Containers an.'! closures.. 

Chemicals and fertilizers, over 
$10.000,000 



Num- 
ber of 
com- 
panies ' 



Principal sources 



Earn- 
ings ' 



Capital 
mar- 
kets < 



other 



A';B8 



A' 



B' 

A' 



Principal uses 



Capital 
expend- 
itures 5 



Cur- 
rent 
assets 



other 





B« 




A« 


B 






B9 




A« 


B 


A 8 




B8 




A 8 



B« 



' "A" denotes largest source or diisposal: "B" denotes next to largest. 

' Number of companies varies from those of previous ^ears. 

' Depreciation plus net income. 

* Lona-term debt plus capita! stocls. 

■ Land, buildin?. and equipment. 

8 Current liabilities. 

' Current asset?. 

' Investments. 



CONCENTRATION OF ECONOMIC POWER 



147 







feP 1 




roooiiot. 
so 








10 


-^ 


s 






















a> o 




























"3 


Ph O 




^ ! 
























a 


■" 




O•o^>■t-o§ 


t-HOS 


OS 




OS 




N ■* C* 




.a 


3 




pooio ooo 


S'" 


to 




cj 




«td 06 







o 

s 

->1 




||^«C.„S . 


■0 










i 








































feg 














t~iN 



























(M 












f- 




c 
















1 




s 


PI.S 






































CJ 


































3 


■s 


CO 












coco 




OS 


r>- 


c^ 










r9 


3 


OS 












OJOO 




to 


oi 


OS CO 










CC 


o 

e 


^ 
















£; 


OS 


MOO 












■< 
































ho 




''S 


s 


-H "5 


CO 


g 




















1 


tiS 
































a 




mo 


X5 


•Ot~ 




OS 


rt 


00 





—1—1 CO 




.a 


a 




Sis 


to 


CO 05 




oi 


t^ 


OS 





»o 10 to 




P 


o 




00 




c* 


CO 





Tj* 


t>.OS rH 




1 




«3-M 










to 








1 
















1 








Sg 


(N 




^ 


00 




01 ' 



































t^ 1 























?^ 


(!,§ 


































u 
































3 


1 


as 




eo 


to 




00 00 ■ 


— 1 







t^ 










,9 


to 




■^ 


00 




to ' 


^ 




OS 


^; 










CO 


i 








•>«< 




■^ to 1 


s 

















































a? 9 


>OCTi^,-^t^05 








IM 


8 




















a 


P^ 8 


^~^ 




























p 


0» 05 0000 








00 


10 


c^ 


ost-mt~ 






w 


3 


— <■ o IN r-i t>; 00 








(N 


CO 


00 


cioscouj 






Q 


o 

a 


^„g «- 










JS 


OS 


osrtoo 




i 






































S 


PhS 




i 








^e^ ^ : 


1 




















y> 
































u 


fl 




♦• 








CO 1^ US 1 


iC 




■* 








(N 




o 


3 










■* N -<■ ui ' 


gy 




^ 








e4 




02 


< 




1 








«* 2: ;s ' 

"^ CO ' 


g 




t~ 








CO 




































*s 




00« 

00 








00 




CM 


g 


( 


















"3 

a 


pu,8 






































1 




moo 








t 






N 


ca 


__ 


t^ 














.a 




■*r-: 








N 


^ 


10 




fc 














r*, 


o 




>0 05 








to 










c^ 














^ 







«lO 














t- 
















cc. 




































« 

2 






















— 




♦J 


11 1 1 
















1 

1 




fcg 

Ph& 


■* 




^ t^iOM 


g 2 ; 


8 


















o 
















1 


u 


c 

3 


C4 




mojwr^ 


tc e<i i 


OS 


lu5-«<Wt^ 


j 


a 


to 




' uimm 


oo" 00 ' 


u: 


S i^SB^ ?l 




o 

s 






« cc 


CO OS ' 




j 




f» 






^ 


t-- 


'^ ' 


[ 
















j 




ha 


c^ 


QOrt 




^ 






^ 


g 


















1 
a 


P^S 








^"^ 






^ 




















' a 


P5 


!0-< 




(N 






CO 


~z 


OS t» t~ 00 








.a 


3 


t^ 


ego 




^ 








t- 


CO rt' CO <>> !>: 






j 


Q 


1 


t^ 












oc 


■* 00 t^ C^^ rf 






! 




m 






















1 § 




< 














_ 






— 
























fcg 








-^J*!-! 


t^OO OS 1 

































-^ CO 1 


!= 




















S 


Png 


























































g 


•g 




to 




-«< >ra 


coo t~ ; 


lO 












•* OB 




tg 


3 




O 




CO t^ 


00 (m' >o i 


t^ 












uj 10 


( 










CO 


la^-i CO 1 


m 












t^ 


1 




a 




«e 






■<r CO 1 


oc 














1 




















































A 


















.2 
















































1 
























s 








a 








*"■ 














d 
3 










g 


is 








"3 
> 










1 










|. 


1 


1 








^ 


■3 


2 


IP 










w 


>,a;f=«jaj< n „ 
















1 








"c 


6ij:'3 S » 5 '-'^ 








ag 2^ a'S^'3'S.S-o 


e- 










fc^^og5o.^a^.>-^ 










. C 


i 


? 


< 


c 


: 
f^ 


< 




;; 




^ 




^ 














1 



V a 






259845— 40— No.' 15- 



-li 



148 



CONCENTRATION OF ECONOMIC PQWER 











1 ♦^ 




«— 1 to "I 


. . ■ 00-< 


o 


1 1 1 














!-• d 




IS. »-< 




5 111 














(S8 




















a 








1 1 1 






c 


1 
i 




^rt mo 


' 1 ' i«(M 


t~ 


c< ' iwr^cs 1 




o 






.2 




ciNcoeo 


t 1 - « CO 
1 1 . CC 


CO 


* 1 ilOOOi-l i 




1 










««• 












I 




2 




<! 














^ 




feo '=^" 


; ; ; i'^'=»S ; ; 


8 








^l 






8 


Ph 8 




; J 










<N-» 




















3 


1 "" 


1 1 ; Ic 


il-H to ' ' 


t^ 


loi-- 


1 ' 1 <» 


>*H 






o 


! ; ; 1 00 -*■ to i • 


ic 


iSS3 


> 1 . i-H 








w 


i -" 




CO CO : 1 


o> 


I ■ c CO 


oo" 










CO ^ . 
















-<! 
















a 


Ah S ; 


cc i £ 1 -' 1 


8 ii i 
1 -^ 1 ; ; 






>o 


a i 

3 


ira-o" ioooa • co 1 


It. \ 


|o> 1 




60" 






.a 


oi t^ ' r-i c4 «3 'i ■*■ 1 


)p 


iO> < 


lej 1 




s 






fi 


a ; 


TO '■'^ 


C< 1 lO 1 




i<5 1 


. lO . 




© 








d& ' 












■^2 








<i 1 : 












— 


e 
























fc| 


'"'2 


. , 00 1 


1 1 1^ 1 


8 


1 1 1 






§. 






8 


PlhS 














K. 
















1 


8 






3 


q 


! 1 lO i 


I 1 Tf 1 O 


i-i 


<o '■r^t. ■a> « 






eg 


3 i^"" 


! ! oi ! 


1 lc> 'eo 


ui 


to 1 »0 ^ .OS N 


r 






1 


«»«: 


11"' 


1 ■■«< c o» 

■ 'CO 


T 


T(< iir>^ .00 










■< 












: 1 


ji 






fca 




;<» i S 


8 








^ 






"3 

a 


Ph8 














w 


1 


<0 ■«< 00 -H ■* 1 


1 lO 1 rH ; 


00 


octo je 


■^to j 








J3 


00 ' r- ' C6 ■^" ' 


isj i si 


»c 


m'oo 'i 


Ji'oi ' 








Q 


1 


S ?S ; 


CO 


to-* cr 






■>«>l 




















00 


•3 


i 




<! 














"^ 




^s 




! 1 iio 


^ is i" 


8 








u 


p 






P4§ 








^ 










o 




S 
















t 


1 




; ; ; ;^ 


■H i lo !oo 


00 


. . .^^ 


j loo •>»< 


A 




o 




1 t I I to 


30 ' 00 < CS* 


m 


. .-^ 


. < lO OS 


e 






M2 


o 








eo 




1 1" 


S 


_d 






a 




1 1 1 1** 


■ CO j 


TT 






Im,^ 








<; 














e 


1 




















*** 






fc| 


2e;S ; i" 


1 0> ' 0> ■-1 


8 








1 


« 




1 

a 

.a 


Pn8 


1 J 












"3 





1 


00 ^ QQ > lO 


,m 1 oaoo 
1 1^ 1 e-> IN 


CO 


' 1 lo' 


o 1 1 




e 




Q 




s& 1 I i^ 


;"* ; * 


i 


1 icq 


3 1 1 




I? 




1 




< 














•2. 
1 


8 


0^8 




I ' o to .' 


ef [■ 


8 




























3 


o 

a 




1 ) ■«< t- 1 


to ito 


CO 


toto ' 


If >o 00 






S 




! loioo ' 


■ iK ' i 

ICO 


§ 


Ut i 


15?j * 


"« 








-«i 














8 

00 




1 

.a 

Q 


i£8 




|S§ ;2 i 




8 












1 
o 

a 






OS ! ! ^co 


i 




loS 1 r^ 

if: i » 








<! 














Ci 


















oe 






8 


k% 


^ CO 1 M 'CO 


ioS 1 


8 






TS 






























-e 






^ 


a 

3 


os-v !•»»• io 


loo to 1 


'■i 


OOOtt 


40 loS 1 


e 






5 




1 't^ 1 

i " i 


i 


SKS 


OS 1 to 1 










S» '. 1 










^ 








1 ->1 












w 




















?i 














' ' '"S 




' J 


1 1 1 ob 1 


=0 














i ; ig i 




''1 


I I I"^ • 


i 
(N 

n 

< 










•2 

a 


il i i 


i ;■§? i 

:2Sla^ 


i 1 

1 f- 


I'm 
. t» 

'.'3 
5 '^ 1 

o» S "^ 

s * > 

.3 od s 


i ;^o ; 

1 -CI ff 1 

lAgS 1 












es^ogi^-^e^^s ^oaiiz« 1 












^ 2 


S 033 3 5 




^ 


^ 







sM 



I a 



«.9 f^ 



^a 



CONCENTRATION OF ECONOMIC POWEP 



149 













1.-0 




^ 


CO 


o> cs 








1 2 


1 
























g 
a 


jnaojaj 






















•o'ooo'i" 


eo-w> 








CO 


ira mt~«40 






o 




to 


5 


!(unoaiy 




00 CO 








1 
1^ 


tc OOCS-rt-— 1 










iy 




































^ 








^nooaad 






;' ■" 


;-s =:£|g|l 
















3i 








; 'os 


. 10 GO -^ r* 


CO 












IT 


to 




f? 






t» 


innoniv 






: i^ 


.^^2 " 















^^ 








1 

a 


^naojaj 




U5 1— 1 
































_ 


00 -S' ! (^ (M 








(M 


OS lOr)< 


CO 






05" 






5 


jnnorav 





00 ' '-' 








OS 


8;:?s 


;::3 










s 


















-^ 


























'? 






1 


jnaoaa,! 


' m 


1 I 00 


g 


















)^ 




;cM 


1 CO • • 05 — -< 


csll 






90 


axe 










CO 


jnnorav 


:g| 


,,^ , ,C»0 TTN 


- 






•>»< 


^^ 




to 






jaaaaaa: 


N 


rj* ■ 


f- 1 




OS.-H 

u-O 


g • 














■li 




■»-< 


to ! • 


1- I 




coc 


c-» 


■0 


OS 








■c 






s 


junouiv 


?s 


CO r 


31 1 




f^"- 


fi 


00 


>o 


























(N 
















s 


























s 


s 


^naojsd 


l*^ 


— -OS 

5^ 


r-t(NtO 
^- ■* 




2 










































1"^ 






3 




lO 


t>.« 


05IM1N 




M 05 


N 


■«i<ooc- 




■^ 


•0 




=^ 


jimorav 


> ;s 


'"'« 


"?§§ 




g^ 


" 


SIS^ 




t 




1 


jnaojaj 


^i^-^SS 




WOI 


•2' 


1 




i 




























^ 


a 








ooso^ 




■* CD 


o»c 


OS 






































<c 


3 
C 


?J? 


Q 


jnnomv 


g"g?3 




Nt^ 


a^' 


'?^ 






-1 •<I<00 1 






















c 




ca 






























— 






jnaojaj 








,lNO ■ 


00 




S 




















8 






























1 






3 


jniioniy 








■ OJCO 1 






OS OSCM 
eg Oi^ 






1-1 f^ 




K 

C3 














' \^ '. 


— ' 




■^ 




































« 


■3 

Q 




1 


inaajaj 




CO 1 


00 


8 




































•~? 






P< 






c«)OC3 00> 1 :s 


<^ 


CO 






CO 


cooscic 




u 






5 


junomv 




|-<0'0 to-* .t- 


t^ 


g 






10 


Os-^-« 








s 


























































3 






8 


%U&3l'di 


s 








CO 


S 


^ 





















CO 


1^ 




OS 














•<f 


CO tc 


t^ 






« 








OQ 


jnnoinv 




12 








to 


OS 

■* 


'^ 


00 1 — >co 


10 






to 4" 








5 


^U30J9<I 




£S"S 


-"£ 






g : 












3 

M ^ 


"3 

5 


junoniv 




f^oseoo 


■* t^ 
e4 






■<»< 






coo 


s 1 


a 


































s 






































■tt 






S 


jneojaj 


^ 






•* ' 


OS -H.-H 


s 
















>. 


,1^. 
































m "O 




iunorav 


t 






to 1 

t ; 


M <NtO 


1 


•O-"*" to 




0: 


*« 00 






























S f^ 
































?^ 
























, 




















M 2 


1 
























> 
5 


















1 

IS 


5 a 


w 




















\ 




^ 








C 








.a 


g^ s 










































n 
< 










a 
1 


J 


§ :.2 


•a 


i 

u en 


tioos 

|i 

g.a-g 


3 





J 

5 

s 

.£ 


Is 

a to 
ca > 

C8 « 


c 
c 
> 


a 

3 
pi 

C3 

C 

1 



-2 a 

It 

II 
8 ° 


1° "^ 

3 a PL, 






■ 









fl 






3 


<^ 


a) 

Q 










S: 

















150 



CONCENTRATION OF ECONOMIC POWER 



?3 3 






«c 



pq 
H 





1 




•^ a 




100 


CO 1 


iCO 


\ 


5^1 


8 
















OJ <u 


















a 


diS 


It I 1 ' 1 
















a 


1 1«5 In 1 !•* 1 t~rt 


o 






ccoj r- 






.a 
Q 


a 

§ 
< 


i is 1^ 1 i" 1 i^ 








=^§ g 




1 




1 ' 1 II I 
















mo '« 1-*,-, ■■>»< ' 




T 














S 


OC 1 


i '^ i i 




































3 


1 


■*■»< !■«< lo«D iN 




o 


ff^ C0 05 0S 










o 


Ft CO IS 1«'^ IS 
S& 1 1 




r^ 


00 pi •*■ CO 

S-S2 










02 


i 




s 












oj 




J I 


















s| 


1 Ito 


.CO-* III t^ 1 
P r* lit r-t 1 


s 


: 












a 


PkS 


















1 


1 lo 


lo-* 1 1 1 o> 1 


CO 




CO 1 


t»t^ CO 






a 


1 1 «-H 


iSg i i i 2 1 


o 




00 1 


— "t-i <3 






Q 




1 ITI« 






t>. 1 


COt~ rt 






■< 


1 l«l» 


iiO , 1 1 ,-1 1 


1--. 






-* 




1 






































S 




g-^ is j 


-~,co>o 


" 


g 






























3 


1 


-< QO 1 "5 1 


— QC-H 


OS 1 CO 


-H ItKO 










rS 


odoo l-H I 


■§?§ 


t^ 


o 


00 l->J<N 










03 


o 


S 1 1 






r^ '-0<t^ 












a 






t^ 


^ iCOCO 












< 






















fe| 


<»-<00 




-. ; 1 




N 


g 














1 


PhS 
























1 


ow* 




-* 1 




o 


T 


-41 Ic0>0 










.°3 


.-- cvj rC 








o 


CO 


S i§'2 










ft 




ccto-* 




















g 


s 










lO 


lr-<CC 








1 




< 














1 






'n 




Sg 




1 It 


><»o loeo CO 1 


i 










•a 




s 


fii8 




































2 




g 


1 




1 le 


otDt^ icoe^i o> 1 


o 




o> 1 


CON t~ 


5 




5 




i is 


3>t-:-* loJN oi 1 

^t^CO iNCO <D 1 


s 




s i 


Sn f3 


■Q 






■«i 






to . 1 


»o 






CO 


g 










; ; 










1 




s 

.a 

Q 


ha 


«5 llO 


iSss ; 




CO 


g 








u 

o 


1 


■* lo5 


l-^5Mt^ 1 

le^ ■ ■ 1 

itO 1 




CO 


ID 

oi 

OO 


IC COCO 
COCJQ 


-.CD •* 

S«5 g? 


a 


1 




•1 






















feg 




>o 1 


N 1 1 Icoo -^ 1 


8 




















I 1 .CO^ -* . 














S 


(1,8 










































s 


a 




OO 1 


31 1 1 1 w eo -* 1 


CO 




1 la 










eg 


a 

i 
-«1 




^ 


pi 1 1 Iq«o \a 1 

1 1 ifflCO t^ 1 


2 




1 IS 












^1 


■noo> 








'~S 






1 1 1 










■*■* 






















a 


pLlg 
















J 1 I 








1 

o 

s 

< 


•*-< t- 








N 


OS 1 la 


^ CO ! iM 






i3 



^Oit^ 








1 


s i \i 


3S ; s 




i 






































^H 




Sg 






t^Noo-^t^eo <© CO 


g 




















^ •* — 














8 


p.$ 








































3 


a 

3 






»-i lO O O i-l 1-H lOOS 1 c^ 




It^i-- 


1 lo 








5 






-*•* lOrtcoei -<!0 


00 




^S5 


1 l-* 








< 






— C^-H OJCO —1 


c 




1 ICO 














«0^ 


















































';j3 ; 1 








1 1 1 d 




















; g ; 1 






'9 ' 














* 

c 


M >■ 

ig| 


r assets 

liabilities 

debt .... 

r liabilities 




i 


li® 1 1 
3'S 1 1 
3 1 i 

3 Co' I 

if. 




' 


1 Q I 

\'a I 
i_> 1 

fl a c« 

itJ3'S 


i \^a 

- ^ CO t- 


3 










cSs^S'S^is-s.s^g ^ 


.SSgE;o8 = S ! 










2 


j5z 




3=3 a 


C 


5^; 


E-2 




. 


- 


:z<:< 





CONCENTRATION OF ECONOMIC POWER 



151 







k- a 


S 


2"* 














; 


SI 
















(28 














1 rt 1 












\ 


1 














Ji 1 














1 


O 


CQO) 1 












^1 


OO-*-^ 1 






.s 


*9 


ci-^f t 












CO 


O CO OJ c^" i 






P 


o 

a 


E 


CO^ 1 












c3 


■«■ 1-1 TJ-CM I 






1 


.^ 






















s 


1 






























8 


(£8 


loo 1 


g;^^<Nt^ 00 1-1 


8 


































^ 


-♦J 

1 


ll-l 1 


»H ;cmt^t~ Tfc^ 


-H 








coco •# 




s 


is ; • 

109 1 


1 ■ '"S ^^ 


CO 
CO 








QO.-I Tl< 


i 


















I 




1 -t^ 


s 


ooco i 




•tfi 




- 


8 








T 








d, s 


























1 


s 














































' 


o 



1 

o 

B 


t^ 


rH W 1 




t^ 




rt 


t^ 


M io5«0 i 








?|S3 i 




o 




CO 


i 


" i?5| i 




i "5 

1 s 

1 " 




< 


























§3g 


In 1 


S 


-^ 


U3 00 ' 

i~i 1 


8 










1 
1 


8 


fmS 










































1 


u 


1 


!■* i 


■* 


M 


CO CO 1 


t^ 




OS 




OlO "3 


1 


eg 


no 1 


T)i 


ci 


8 Is i 


o 




^ 




CO oi F-i 




< 


iw 1 


55 




SS 




Ol 




«^ -1 


1 






















i 




fcg 


1 le^ 


toeo-< to 




c^ 


o 


















t^ 






o 












1 


1 
1 


Bh8 






















i 


fl 


1 1«D 


00 o o% O) 




CO 


UO 


-HO t^ 


o »0 CO 






3 


! is 


00 id 'od 




CO 


id 


ococo 


t-^CO 00 


1 


5 


o 

a 


1 1^ 








15 


t^t-OS 


05 1-1 


i 1 




< 


















s| 


S^ ^ 








t-f m 1 


8 












i 


s 

s 


PM§ 
























1 


t^OO io5 








M 05 1 


« 






IT}> i 




1 


o 


00^ lOi 








t^ t>; 1 


id 






lo 1 




1 


to 


S^ : 
















ie^ i 




























1 


"i 


il 


§ ; i 








'^ 


coco 


8 












1 
1 


1 


*. 


CO 1 1 








CO 


OitO 


-H 


TJI* 1 


3>>O00 ' 1 


j 




§ 


«■ i i 
§1 1 i 








CO 


o ca 


o> 


05 ' 


o id o 1 i 


j 


p 


o 

a 












s 


00 • 


300 lO 1 1 


1 i 




■< 






















fcfl 


1 to t^,->g •>*',-, 


U3 1 i 


8 














8 


1^8 


, w w 
















j 






















o 


a 

3 
o 

1 


1 N 05 M o» r- SO 


«3 i i 


.-1 




-" 






CO •* 




i to C» r-i id M 


OS II 


a 




Ei 






s s 




02 


:si" ??•" 




CO 


~ 


CO 






JO CO 


1 


1 


fca 


llOi-l 


0»— 1^ 




i s-^ 


8. 












i 


s 


i£8 




; ^ 






*H 












1 


CO 

1 

R 


1 
o 

a 


lioo 


le<<«o» 




1 .-100 


CO 




',-, 




U510 1 


i 

1 




i|' ■ 




i S'^ 

1 CO 


i 




e<i 




:??§ ; 


1 N 






















i a 
i 


C 


fee 
(£8 


lO 1 li-l 1 i 1—1 CO i ' 

OS 1 1 ' ! ! 11 


8 












1 


5 

5 


1 


IM 1 1« 1 . IiOOJ II 


1 °° 


o ' 


00 >o 


! 00 


i 


c<i I 1 CO 1 1 1-^ o^ II 


oi 


^ i 

■T 1 


coc? 


i 8S 


! 








im i i i 






'.2 ' 


1 








ii ; 1 ; 


i a 




'^^ 1 


1 






; :.u; ; ! ; 1 ; 




1 © 
i*ca 




•|o i 








' 1 S ; 1 1 1 1 « •- 1 1 i 


1 P 




.Q » 








fl'msccll I 




1 1 oi * t; ' 1 








; :8 'S ;•£ :S§ : ; '■ . 


^ ?• 
















3 i ea 3 3S « P.®^ o ^ 


1 






' 








TV' - 


-"■ 


^' 




"C 


i: 


jZ 


cc 






- 






1 



SI « 

. Ph 



f5 (^ 



<u a 

as 



a « 



152 



CONCENTRATION OF ECONOMIC POWER 



3 ^ 





1 


jn30J9<I 


9 




t- 


IM 




C; 












s 


















^unoniv 


1 


— IN 
8^' 


■^ 








1 


■«<■ 

CO 


00 CM CO 










CO 


juaoaaa 




U5 




CO 


coc^ »o eoc^ 


§ 


















junomv 








00 


doc-* 00 ■ 


■»<■ 

CO 










^ 


a 


iUQOiad 




£ 


t- 








§ 














1 


jnnonrv 


OO-HO 


w 


55 








« 






U5 0> 

si 








8 


?n30J9d: 










s 


o 


CO ooc- 


s 


















junoniv 












o> 


•O OOJ 
CO r-." 


CO 






OO-lO j 

§§*' 1 
^ 1 


i 


o. 

i2 
Q 


jnaojaj 






^£3 


^N 




- 


8 


; i 






1 
. 1 


^onorav 






OOOIN 


too 
"id 




00 
CO 


CO 
CO 


t»CO 




Oh- 

tdos 




(S 

1 

QQ 


)a93i9(I 


s- 












U5 M- 




8 


















■janooiv 














•*■ CO 




CO 






to IN 




lO 

CO 






-ingDiad 


•o-ieo 




££ 






- 


8 






; i 








qnnotav 


CO t>; id 

i 




N 






00 

to 


IC ^ 

id to 


wto 

CMO 
CM T»< 








3 

o 

CO 


]a93J9J 






■"§ 




COM ■* 




S 
















1 
1 


^unoniv 








too 








id 




>d 




-OC-. "I 

t^ CC M j 


1 
1 


jnaojgd: 




CC U5i^O> -H 






5g 

CO 




8 


1 
1 


i 




MM 


innotnv 




O -^ W 00 »o 
c-j <n' i?i — ; rH 






<d 

05 




CO 




o 




lO(N 1-1 j 

crii-^id 1 




?^ 


inaojaa 


00 










CT" "^ 


-■. 


8 
















i 


1- 

5 

1 "' 
1 


junomv 












CO MS 00 


N 
N 


CO 


d 


■^ i-t 

octd 

C0 05 








1 


73 
1 

(5 


jaaojaa; 










C5 




§i; 












junorav 






o 00 ^" »«cv» 




g 




CM 1 to 
lO 1 c^ 




0100500 1 

cdcodid i 


o 


jnaDjaj 


COCO 










S* 


£ 


2 11 












j 


■janoniv 


©■o 










co- 
ld cm' 


CO l«j! 


i« ira 

00 CO 
















V 

a 


1 

1 


1 


c 
c 
a 

u 
a, 
c 

c 
1 


'1 

'a 
' c 

< 


1 

c 


x: 

4 

1 


■< 


c 
c 

X 


c 
c 

c 


U 

"3 

a 

c 

2; 






"3 
o 


O 

r 

b 
C 


c 

> 
a 
c 
« 

•a 

a 

Si 

a, 


> 


o 

c 
a 
> 

a 


4 
> 

1 


_a 

a 
< 


5 

o 
< 


1 



M 


p. 














lO 


,c 






t~ 


'3 


















^ 


sz 


CO 


fu 










\n 


T7 


fe 


D 




IX. 














s 


£-, 



o 
2.9 (^ 



,35 



CONCENTRATION OF ECONOMIC POWER 



153 



CO 
CO 


1 
a 

S3 




(28 








£ 


S°^ 


£ 


r^ 


« 


s 


'^ 


s 




























<ot- wooM 
WT)<od ■-< 


OCO 










ON 




s 
5 














00 




1 
















o 

3 

i 












8 




00 -^f cc« 




to 


i 


1 
a 

.2 

Q 


il 




«OS 


oto^ 




s? i 


s 
















1 

o 
S 
< 




00 t~ 






OS 1 

s i 


ooj 

CO 










(NO t~ 

CO 


8 

3 




oc 




£ 






NtO 


-^ 


s 


















1 






•o 




' 




o 


00 
CO 


-y od»6cd 

;Oco<o ^ 
■^ CO -^ ^ 








'- 


a 

.2 



fen 

0.8 


M(0 tj— •« 




























a 

3 

1 

-"I 


in (O o ■«< lo 
odoort t^ 

Tj-OlCOrt >o 












o 


OOO'* 

o^eo 


coco 




§ 

o 

M 


fe a 
^8 












2 ^ 00 


8 


















1 

o 

a 












waioo-* ■«■ >o 

■>»i ci 00 IN 3> r~; 
rt 00 (N ^ 


o 












oi 


00 

2 


■3 

1 
Q 




CO t^o^co 


£ 









8 


















3 


t~ 00 to 00 00 


CO 






00 
(N 


00 


■»>■ r-H~ OS 0> 

O t-^ IN -■' ■*■ 

Q 00 OCO -^ 


o 


S 

a 
o 


So 

^;8 












5! 


S8 ::; 


8 


















1 

1 

o1 












OS 


COCO 00 ' 


00 












eo 
to 




1 
i 

i 


1 

.1 


feg 

pm8 


CO 


^" 




00 t~ 




CO 


2 


















a 

3 

O 

3 
1 < 


i 


00>— 
CO 








S5 


oi 






COIN 


to 
to" 




8 

3 

5 


Pi s 




t~- 




oc a> 




?3 2 ils 

! 1 ■" 


















a 

a 

< 




C<l 

i 




S2 




1^ C4 1 c* r*o 
h-: ■* 1 oi e4co 

U2 O • -^ C0«0 




,| 


- 1 


! 








c 
1 C 


1 c 
3 t 


C 
c 

1 01 

I; c 


! 

i-2 


'1 
3c 


It: 


5 " 
33 


c 

7 


c 


1' 


1 . 
pi 


« 

c 






c 

s 

T 

> 


! & 

in 


1 


c 

■ c 

;2 


3 

c 
< < 


'.2 


1 



;^ 



a S 

rt 9 



154 



CONCENTRATION OF ECONOMIC POWER 



CQ 



■^ S 







« 4J 


t- .Ol ■ irH 1 1 ■ 


leo 




1 1 1 1 1 1 






I 




t^ 1 ,-1 -1 r ' ' 1 

i \ \ X \ \ \ 


1 "II M i M i 




1 


^ \^ \ \t^ \ \ , 


los 


ot 


(M loSrt 1 1 








oa 'cD 1 1 m < ' ■ 


•*■_ 


CO 


CO lcot>: 1 1 






(5 


o 

a 


..S* 1 t-H 1 1 III 




>C1 


i-( Ico-l 1 > 








^ ; ; 1 ; 1 ; 












1 


< 






























fefl 


;.«< i_00 ■^..MO 


lO 1 


o 










1 ' ^^ 'C^^CS 




o 








S 


flng 


























3 




ItO 'o>0 1.-HDO 


o 1 


00 


;os 1 l^os 


OS 




o 


1 rjJ 1 i-l C<J r ■ CO ,-! 


OS 1 


CO 


1 -J 1 1 CO N 


CO 




«J 


6 
< 


laa . CO I '-I 


(M 1 


lO 


l'^ 1 1"^ 


'J' 




















fc« 


c^ iim i lO,-^ i ! 


US 1 


o 




; 






O 1 1 'C<Io ' ' 


n 1 


o 








"3 
1 


f^ 8 










I 


3 


oi Itji ; 'oc t^ i 1 


CO 1 


^ 


N 'COl^ i 1 


^ 




.S3 


d 1 *iJ 1 1 .-H " 1 1 


lO 1 




OP it>^ .-H ' J 


co'; 




Q 


i 


S .S 1 lO 1 . 


N . 


fej 


=; iS^ 1 1 


-v 






«© 1 11, ' ' 










i 




<; 


1 II II 




1 
























fee 


',\a 'eooo . i io-* 




o 


o 










iC<l I M 1 i«N 






o 








S 


(1,8 






























3 


a 

j3 


1.1^ 't-o i iN as 




CO 


--I 


1(M 1 It^-O 






o 


1 lO 1 -1^ Cq 1 1 00 OS 




n 


CO 


1 00 1 1 00 o 






oa 


a 


,(N ir-lTji 1 1.* w 




lO 


o 


IN ' 1 —1.* 














lO 










\v)- \ II 
















<i 


















ha 


1 lO 1 t^ 1 1 f 1 


t:: ' 


o 












CO 1 


o 








a 


PLhS 












1 

o 

a 
< 


1 ico |oo 1 1 i i 


r^ 1 


N 


It^QO loON 






.S3 


1 led lo 1 11 1 


o 1 
^ 1 
N 1 


t^ 

s? 


1 CO -i 1 >rf Qp 
1 r^ <N 1 t^ N 




■* 






i 1 






s 




fee 


ION iN liO,-,C»'* 




o 










fc .-1 ' ' c^ c^ 




CO o 








8 
o 


Ph u 












a 

3 
1 


rH'J' ' O iot-Om 




lo 


(N 


N 1 Ico 1 1 


-H 




»oc4 1 r-^ 1 OS ' o *-5 




rH 


r^ 


CO 1 IS 1 1 


£2 




02 


(rq^ . iw «iiM 




"^ 


■o 


■^ 






^ i i 
















«i* 


















£ a 


ci r^ r-l ^.^ 1 1 t>- 1 1 


CO 1 


o 










m 1— 1 r;. II ' ' 


1" 1 


o 








a 


(^8 












a 
a 
o 

a 


«C o O O 1 ; 00 1 J 


I^ 1 


rH 


1 1,-1T»I 1 1 








cc? oi *c i-i ' 1 50* 1 ' 


00 1 


1-.: 


1 It^jj ■ 1 1 






Q 


N c^ T). 1 1 N 1 ; 


o ■ 


OS 


I lOCO 1 1 








«e 1111 










1 




<< 














fea 


1 1 1 Ion Irt to 




.* 


o 










1 1 1 i»n ii-< CO 






o 








03 


PhS 








^ 










n 

3 

o 


I 1 1 1 OS « 1 t^ »o 




r- 


J 


coos 1 lo<N 


I- 




1 1 1 1 CO CO 1 •-* N 




r^ 


(^ 


O pi 1 1 00 CD 


ci 




m 








CO 


t^ -^ 1 1 lO o 


CO 






a 


1 1 1 1<& 1 






II ' 1 








<j 









II 1 • 








fea 


1 lNr1rtlO,.^CO I 


:2 ' 


o 












r* 1 


o 








"5 


11 ^"^ 1 




l-l 


1 1 1 1 1 1 






CO 

a 

.a 


3 


1 li^^ ioiow»< 1 


CO 1 


o 


1 I 1 IcMOs 






1 1 -W CO O 'O ' -i 1 


T-i 1 


o 


i 1 i §s 




i 


Q 


a 


1 iM »-i Tf CO r- 1 

: : 1 


CO 1 

OS ; 


2 






ss 


l^N . 1 1 1 1 'O 




l-H 


o 


111111 








QC 1 1 1 1 . 1 »-l 






o 








3. 


i£s 








" 


1 1 1 I 1 1 






















a 

3 

s 

■< 


t^oc 1 1 I 1 1 iW 




CO 


o 


NCOCOO 1 1 


t~ 




^ ^ [ ! ! 1 ! I ^ 




c5 


o 


CO 00 oc t- 1 t 


lO 




m 


oSn' 1 CO 






■o 


Tj. looser r 1 






o ' 1 J ! 1 l*"^ 






N 


OSM.<J< CO 1 1 








««. 1 1 1 1 1 1 






I-, 












i i i ; 1 i i i i 


a 






2 1 








1 t m 1 ( 1 1 • 1 


2 




i iliiij 


1 










t-l 

s 

"3 

a^ 


3 1 

3„' 


otals 

B capital: 

h and equlval 

entories 

;es payable- _ 
oants payable 
other curren 
ilities ,.,.. 








pIss^-o^-sI 


I^S ^ .SSg>o8 


33.0 


1 








■St 
IS 


-S" 




o 


< 



^ s 

■& ^ 

3 a 

o. 8 

A ^. 

U -W rH 

^03 OS 

eg I 

ct! a ph 

5S •• 

«3 8 

J« I 

Ml-H O 

- ™ EQ 



CONCENTRATION OF ECONOMIC POWER 



155 







1 


00 


,_, 


05 








,_, 


,_, 






1 o 






, 




, , 






"3 


^naojaj 














1 1 


ill! 




1 


CO-* OS 






ooo 




! oi 


00 


00^ I I 






P 


Hmomv 


S"'{i , 






Neo 




CO 


t- . 


a>^ i 1 








1^ : 












»-i 


CMfH 1 1 






















9, 


jneojaj 








PliOi-1 

■^ c^ 




t~ 


»« j§l 




' 






i i 






S 










00t(<O ' 




CO 


(NOa 05 




?D ! 




O-*— 1 




CQ 


innotnv 








o«<o 




05 

to 


l?S 2 




S 




•^ss 






















1^1 












1 

Q. 


jnaoaaj 


t-MOO 
1^ 1— ( 




M 








e g 




1 




1 i 






t~05lO 




o 








t^ 00 


CO — ■ t~ o3 ! 1 






5 


^nnorav 


OOOiO 




lO 








8 


lOCv^o^^ ' ' 




s 




e» 
































^ 


S 


jnaajaj 








-^g 


P.SS 


C" 


; R 










1 ; 




























































3 










COtJI 


-HOSOO 


CO 


. 00 










ire(Nt^ 




w 


qnnorav 








*2 


S5t2 


'"' 


o 

i ^ 










■<)<t-CO 
COi-< 




1 

o 


^uaDjaj 






■* 


r: 




t- 




N O 

o 










i i 










CO 


lO 




T)< 




-H CO 


lOC-lOS 


r-i-H 






(3 


jcmorav 






!^ 


s ■ 




CO 




Tfi CO 1 

00 


asoco 

»0(NCO 


Pf2 












«» 


















g 


































1 1 1 














, 1 






i 


juaojBj 


^-^ 


o 


•*c~ 


s 


o 


■ 2 










i i 






ON 


to 


-HC<3 


00 


to 


1 CO 








>-i 1 'eo 




«} 


}nnorav 


2:2 

00 •-< 




00 ■ 


cc 




i 2 


, 






3 i ;■* 




•a 
s 

Q. 


^ueoaaj 


o 

05 


o> 




- 








i 2 








i i i 






N 


N 




•* 








1 00 


CO 


coco 1 I 




S 


s 


jimorav 


<«• 


fi 




CO 








J "^1 


CO 
OS 


^Si; 






















( > 






e 


^naojaj 




N 


"g 


o^^ 


0> 


" 2 










; ; 






3 






>o 


MOO 


lOCO-H 


•^ 


O 00 




t^ 




co^ o 




M 


jmioinv 




^ 


00 1- 

co 


;::? 


IN 


CO -a" 




IM 




^goo 




1 
o 

a 


^uaojaj 






,-1 ,-(05i-l 


- 


li 


" 1 










i \ 










comt^oi 


l^ 


o: 


■* c-» 










coo 




N 


5 


^imorav 






iraM "ON 


CO 


c 


M CO 
CO 










?3g 




s. 


g 


jnaojaj 


aiiM 








c; 


Ol 


i 8 










i i 






Oco 








00 


CJ 




' M 


00-HTj<rH 1 !ir 






CQ 


^nnOniv 


go. 










s 




: 1 


CO-<»IO ■« 1 ICO 
OS-*-- >o J 1 




"3 

Q. 


^naoiaj: 




eot~N3je<ic^ 


^ 


p 


^ o 
o 




i 




i ; 








i-H 00 00 lO CJ « 






c> -■ 




C^ 




o>^o< 


5 




5 


:)anoui"V 




ooot^tooo 




s 


to M 




CO 




sgs 


s 


















































^naojaj 


>o 






■ 




*?: 




; ^ 
















3 
































o 












ooc 




: -< 


ire 


»Ot- ' ■ 






IM 


ijononiv 


1 












^s 


> 


i § 


(M 


,Sg 1 1 


































































;-^ 






;| 




' ' '.2 












jfl 










1 a 


j I- 


: i i 




1-3 




1 ; * w 










































































!i«i ii 


: J 


f^ 


; 1 1 


5 « S £ * 0.0 








nt asset 
ments- 
roperty 
her asse 
ntliabi 
-'\ debt 
her liah 
dl stock 


3 (U 

s 


1 i "3 

3S H 


)rking cap 
Cash and 
Receivab 
Inventor 
Notes pa 
Accounts 
All other 








£ --^ '^ - £ •? -e .t; S 


C§ 


5 ."2 








) oil 




■i 








c 


/K 


i/ 


:- 


qc 


Jr> 


-!•< 


cc 




;S5 


« 


& 










1 



S .9 



O 03 



S3 ^ 



3 S 



a« 1 

o-o g 

^■o §• 

a ^ »• 

03 a Ph 

S'-c .. 

C53 8 

5^3 
- « DQ 



156 



CONCENTRATION OF ECONOMIC POWER 



.V) 


<c' 






'r* 


C8 








Q 





1 




a O 




^g 






C' 


£ 




s 






8 


















a 

a 
o 

a 
< 






OOliO 




lO 




CO 












Oi o> 


8 

3 
o 
03 


tl 


S 




■«< 






CO 


CM 


8 


















i 


s 

5^ 




CI 






■^co 

CO 




i 








'- 


1 


Ph o 




;:iS§ 


CO 


c;- 


^- 


1 


















i 
< 




is 




IOC4 


o t~. 






00 


coos 

£2 






8 

o 
oa 




2 
" 




CO 


CO 










8 
















■ 


i 


N 




t^ 












r, 

^ 
■» 


U5 


CO 




•O US 


^ 


i 

1 






r-1 CO 


>o-<,^ 






£ 


8 


















a 

a 




00 OJ 


CO — t-- 






^ 


CO 

"5 








00 

5' 


00 o 


i 


0.8 


N 




eo 










8 


















1 
1 


a 

§ 

^ 




■* 






05 00 ^ 

cotd lo 

CO 




3> 

CO 


05 00 05 

OS CO CO 
TPOtO 


00 






^ 


1 

a 




m to 




£ 












8 


















a 

a 
o 

a 


as too 

O C^ CO 


















cioooir-^ 
■^ Tf t-^ r^ 








a 


Ph S 








o^ 


,_,r--i to,-. 


8 


















1 
o 

a 








•«)<<o 


OiO 1^ «Ou5 
CO 00 CO t-^ r^ 

^S 2 


00 

s 










rieo C 


^ 


"a 
1 


Pli S 


00 


v> 






rH Tj< 


'-"-' 


8 


















1 




o 






CO 


moo 






<o 
1-^ 


CO 






1 


s 






31 


,-^00 CO 




g 






g 
















1 
, 1 


H 

a 

i 

<5 




i 






to 

00 
CO 








<o 

00 


22 S? I 


1 






c 


•r 

£ 
e 


I 
> 

c- 

c 

c 

c 

1 


V 

< 


2 
.£ 

c 
a. 

C 




i 
c 

< 


c 
C 


1 

c 


i 

? 

a^ 

|£ 

■as 


"c 

■J 




la 
o 


"S 

s 


1 

9 


2 

> 


£5 

a 


2 

c 

1 


s 

i 

a 
o 

o 


.2 

1 

y 

o 





CONCENTRATION -OF ECONOMIC POWER 



157 








158 



CONCENTRATION OP ECONOMIC POWER 



)neojaj 



jimoniv 



^uaoied: 



jnnoniv 



%UIX)19S. 



%xmomy 



}U80J9d: 



jneojaj 



janomv 



5n90J9<i 



^imoniv 



jnaojgj 



;imoniv 



^aaoaaj 



^nnoray 



^uaojaj 



jnnoinv 



;a80J3j 



ijaiioniv 



%ri&oidj. 



jimorav 



'iuaoiQg, 



^nnoray 



SI"' 


£ 


(N 


00 




•*o» 


rt 


(M 


l> 




§" 


^ 


X> 


9 





S I 8 



I "11 



3 ,?? 






«oooo 



-H OOOM 



O 1 N.H 



sil 



00 00 



<Ot»i CO 
1-1 >0"0 



00-* 



T(l to 



00 •* 






rt Tl<000 



? O Si 



be S 



! rt o S 2 
■ u. t/: c; O 



- ,-1 ■— t* 



CO OS to CO W3 CO 
f-I iC t^ 00 CD o6 






CO CO t* r- o *o CD 

^' i-H O lO t-^ ^' OS 
w C^ t^ OS CO *o ?« 



•a 

cr 



,j2 a 



c.-^ "-r - 



s« - t p ° Es.« . 

g ®=3 3 3— rt^ ci 



.s § » 






^ ^ 



P3 "O 



^ s 



CO IS 



p M £ 

g.a Ah 



.j5 § 



CONCENTRATION OF ECONOMIC POWER 



159 







» J-S 






« 






t* 








«co 


O 




















fcs 














t^ 


c 


















"3 


PmS 


































1 
































a 






«o 




CO 


w 


Neo 


■>s< 












to 




.a 
Q 


3 
o 

a 






^ 

^ 




S 


<* 


P 


i 












CO 


i 




< 
























































00 00 


^-^f-H 


CO 


o 




o 


















8 


CO 


o-' 




■* 




c 




































^ 


1 


(NO 


■"J-O 


00 


o 




■* 


OCOIOCOOIN 






eg 


t^^M 


Niri 


-*■ 


^ 




c< 


c^ r-^ OS o *^' t-^ 

COCOCOiOiO 






o 


o«o 


OS 


cs 


■V 












s 


1^ 






CO 




0( 


■* rt rt 








<; 






















fcg 




1-1 OS ■<1< O N ,-. 




t 


o 
o 


















"i 


fi<g 




^"^ 
























1 


•g 




1-H lO PH 05 00 (^ 




CO 


•t 










il". 00 






H 




t^ h-' m « r" 




t>; 


^ 










\m CO 







§ 
<) 




»o o '^ r* w 




CO 


t 










;S S 


§ 












-" 
































8 




s 












2E5 


E 


: 1 












































3 





CO 












oco 


cq 


•t 


CO >0-<f> t^iO 








o 


3 


^ 












»0 r-H 




r^ 


O '-^' 00 -^ CO 








CQ 


o 


to 












CO 00 




— 


1 OS o to o *o 

■*f5 ■* .-1 










a 


fe 












IN CO 




■^ 










<; 


















■" 












fea 


M tor* w CO 












c 




















N-1U5 












c 


















i 

a 


d^S 






























1 


iot»«oos 












c 


CO t~0-t^o 








.a 


csi -r C5 ■*' ■*' 












CC 


!>: iri -H lo cii 








Q 


o 


t^ CO M M <0 














cq t^ >ra T)< -J 








i 


5gc.o 












s 


-f'-i -^N 






1 




-< 














■" 
























K 


Ph8 












Sc:"'S s- 


c 


















y 






























^ 


fl 












PS-WIN •<»( CO-W 


CO 










'OS M 




o 


3 












■^ ' t>^ O CO C 


tC 










1 CO CO 




CO 


i 
























iUi O 
















o5 5< oo" 


s 












































oj 














■^ 
















«i 


t^c« 






___ 


; 




c 




















C*5 i-H to 














c: 


















1 


PhS 








"■ 


























1 

o 


"OCOtO 






'tf 








t* 


«00>OC0 1 








.a 


o6oto 






'^ 








j: 


t> CO* 00 CO ' 

SIZES'* ; 








B 


CO « to 














c 












«» 






















at 




"1 
















■" 






















'^ 


I 










^«« 


-"S S'' 


i 










































^ 


S 








OOTjiO 


tT t^ OOC 


r- 










coo CO 




S 








o ^' «o 

rH CO CS 


o »o ^uz 


i? 










coS to 






a 








«»N 


CO CO 


c 
















<j 












■^ 
















SSg 


t^Ort rt 












«- 


c 




















00 














c 


















1 

a 


(l<g 
































a 


<D05«a> 












•w 


O! 


CO-^ -H 


OS 








.a 


3 


oot-^r^td 












O! 


o 


1 OS CO -h' 


o 








p 


o 

a 


Cg"$ 












M 


g 


rt •* 


CO 




































ss 










"gJ^^S ;:! 


o 
c 


















'3 


kS 




























« 










cot-mc^o ■>»< 


a 








CO Ico OS 




o 


H 










i§"^i g 


o 








lO iod -H 




OT 


1 
< 


















1-1 . -H Tjl 
















to 


























































^ 
















^ 






































































s 








a 






ca 




































CP 










































1 QJi— t 














a 

3 


















"3 
> 




otes payable -- 
ccounts payabl 
11 other current 
ities 










a 

'J 


1 


II 


1 


.2 


III 

■lal 


1 


O 


to 3 

C 03 > 

.ass 


c 
c 

0) 

> 










3 2 «3) 3 3S 53 <^ oTJ a 




o 


















u 


i? 


«? 


C- 


&^ 


<• 


C 




:^ 


-.J 




^ 












1 



D.5 



160 



CONCENTRATION OF ECONOMIC POWER 








.1 


ii 


s 




§ 


















s 


















1 

o 

a 

-a 


"^ 


CO i 












o 

00 


O ui 05 I--" 

00 CO JO -a" 








o 


^1 
^8 




•* 


OS J0>0,-^QOQO rH 




g 


















a 

3 
o 

s 




OJ 


-*• CO w c^ t^ -a< «o 




o 

00 










IM CO 00 

-<■<< 
t-* OJ »Q 




1 


(28 


S"^^ i 


■* 












s 
















- 


i 




^ 












00 

s 










1 










«» 


-^-^^ S" 


8 


















I 

1 








CIO 

55S 












CO-HtO CO 

■xSoJ'O ci 

^^ ^ CO 


i 


1 

a 

.a 
Q 


PL, g 


^''S i-'Sc; 




a> 




s 


















1 






to 






53 




CO' 






8 
5 


(Ss 








ei 






•^^ 


•a 


8 


















1 

o 

s 

< 








i 






<a CO 

oo_ 


00 
CO 


t~ 






OHO 

coo 

CO I-, 


t~ 


» 


1 

ft 


(S8 


CO 


00 j 


eo^^eo 


So 




8 


















1 . 

i 


m 

u 




-HOiO 

to '■♦ 


ta 




t>- ^ O OS CO 

CO IC —i r-Io 








8 

3 
5 


(i<S 

1 




eo 


^^ 






5 


s 


8 


















e« 


00 <N- 






■«t" 


oj 


CO 

s 








too 10 


i 


1 


(1h8 






«■«< 




CO 




§ 




8 
















1 






CO-* 




to 




o 




CO 

i 

00 












to 




8 

1 


(£i 


5^ 


JNW 


-^s 


- 


8 


















1 


rt eo 




oc» 


U5 
CO 


CO 

i 

00 


to -1 Oj-Ht- 
co-Hididid 
to-* "O jgco 


06 

CO 








1 

c 

C 
a 


c 
1 

1 


■*- 

c 
c 

i 

a; 
> 

a 
C 
c 

c 

1 


•11 

x: c 


a 

1 
Pi 


c 

5 


c 
c 

"5 
c 

0! 

c 


a 
1 

c 



'c 
,c 




1 

c 




1 

c 


C 

!i 



1 
1 

E 

a 

C 
0: 

X 


'I 

> 
1 


j 
i 

a 


2 

a 

i 


1 

> 

'C 

: 
■5 


1 

1 

v 
O.S 





» s 



a 8 



C.S 

-.T3 

a Bf 



CONCP^NTRATION OF E(^ONOMIC POWER 



161 






■^ « 





1 




M 




p 




00 






rt 








^ 


, 


, 


, 


, 


, 




, 








!)n80J8<J 


















i : i i i i i 




























.2 




•^ 1 


O ' 


TO • 




t- ■ 






■«' 


00 O -H •■)< t» 1* 1 






jnnoniv 


s ; 


OS 1 


TO > 










00 


00 00 1^ d OS US 1 




to 


























2 




























i 

3 


jnaoaaj 




^H 


M . 


50-H . 


s^-" 


§ 














' 








TO . 


O ■ 


OTO ■ 


rH (S.O 


Tf> 














00 




to 


^nnomv 




'"' 


•* . 


O-H . 


J^S" 


g 














^ 




o. 


?n90J9J 


q:£^^ 


U5-* 




i-^ 


8 




















a>— lOo 


-H U5 




;^ 


t. 


« to-l IM ' 










5 


jnnomv 


S g" 


too 




r- 


S 


.-. iOOSOO 








05 














t— ( 




































1 


!>n80J»(I 










S5 






S 






















































1 










t. 




e^OQO ■ 


f. 










OC OOr- 




CO 


jniioiuy 










5! 




-^52 j 


§ 










TO 


1 


1 

o 


^uaoj9<i 






TO 










CO-H 


g 








! 1 1 








"3 


■>«< 








00 a> 


TO 


OS(N 




IClCl'^f 


1 


S 


janomv 








00 








TO 


§ 


Olio 




?i^ ■ 


1 g 
































. 1 


1 "* 


i 


inaoaaj. 


So 


« 


ODW'^O 




s 


















































lOO 


„ 


OS ^ O TO 




TO 






TO-* 








1 


CQ 


^nnouiv 


ss ■ 


o 


2«^g 




i 






^^ 










1 


^uaoaaj 


s 


00 




- 






§£ 


8 






\ \ 










rt 


t~ 




Ol 






TOTO 1 to 


t^ 


rfiOTO 








(5 


^unoray 


Sg 


^ 




c< 






^ ■ 


N 


TO 


tow 






i 


















1 " 




























?? 


;uaoa8j[ 




00 


•■^si 


—lOSt^ 




8 
















































a 






w 


■WTO 


toooo 




to 




•O 






00 OS 




M 


jnnoniv 




- 


^E 


-2K 




u: 




to 






00 to 
■* 




1 


■juaoaod 










r^ioC^ 




38o 8 


















































y. 












■*Ort 




TOOS TO 










to 








S 


■junomv 










S3 




M 1 TO 










s 






s 






























































i 


jnaojaj 


INNSON 






«s 




8 




















(N-HTfO 






i*N 




TO 


00 »^ "3 f^ 


oom 




CO 


junoinv 


CO TO ^^ 






00 




TO 


^ U3 to -H 
•V »-^ OS »o 


to 




& 


109043^ 






S 




TO 






O 1 


s 




i 














•♦ 




t^ 






OS i 


O 




to 






t^oo 




Q 


jimoniv 






s 




«^ 






to 'i 






TO 






00 


s 














































8 


tneojaj 


£32 


|«(<-H 


oSg 


'^ 


8 




















-HIO 


tor» 


—1 U5C^ 


TO 


o 


00 


b»OC^ 








.^ 


?Tmorav 


RS 


00 -H 


°s?s 




§ 


■w 


;g5:53 




























1 '.-a ; 










1 
































1 1 1 
















'tK 
































































1 i-o ; 










] 






*^ 
























: :;g 1 










1 






"2 




































■J3 
























1 I'O 1 














' CO 












































i 






1 o 


•^ 




3 t 




1 Ija ; 
, ja ® . 


"o 




'■-3 
', > 

: c„ 


2 


3 ^ 


■So 

^11 








■SMaSp-ss-a'ssg e 


.aSS^oSra 








I 


y 


Si 

3^ 




5^ 




n 

3 = 

4 ^ 


= •£ 

II 


y 


a 


:t3 
^1 






3 


)» 




V 


^ < 


*< 


i 



o oo 



B a 



H-O 21 



^5 



IQ2 CONCENTRATION OF ECONOMIC POWER 

TWO SAMPLES OF SMALL MANUFACTURING CORPORATIONS, 1927-36 

In this section som-ce and disposal statements for two identical 
samples of small manufacturing corporations in each of five industries 
will be presented and described. One sample covers 1927-36 and the 
other 1931-36. The five industries, listed in the order of discussion, 
and the number of companies in each identical sample follow: 

Number of companies 
Industry 



Bakeries 

Men's clothing. 

Furniture 

Stone— clay 

Machine tool-.. 

Total 




The procedure will be to describe the 1927-36 statements for a 
given industry, and then the 1931-36 statements for that industry. 
A concluding paragraph will summarize the picture for that industry. 
This analysis, unfortunately, is much briefer than the original nature- 
of the underlying data warrants. Limitations of time account for 
this lack of due emphasis. These basic data, however, are now being 
analyzed more elaborately by the National Bureau of Economic Re- 
search in New York City. 

Small Baking Corporations. 

Eighty-one bakers, 1927-36.— Oi (he original sample of 200 small 
baking corporations included in the small manufacturing corporations 
study in 1926, 81 continued in existence throughout the 11-year period 
1926-36. Source and application of funds statements for these 81 
companies combined for each of the years 1927-36 are contained in 
table 72. 

Depreciation charges constitute not only a sizable but alsg a 
consistent source of funds. In dollar amounts they rose from $412,000 
in 1927 to $447,000 in 1930 and then declined steadily to a low of 
$337,000 in 1936. As a percentage of the total they fluctuated from 
48 percent in 1927 to 84 percent in 1936. Stock and bond flotations, 
although small and fluctuating, were a source of funds in several of 
the years covered, while net income after dividend disbursements was 
a source of funds in 1927-30 and a disposal thereafter. 

The applications of funds were dominated by capital expenditures 
wliich, like depreciation on the source side, were large and consistent. 
As a percentage of the total uses capital expenditures fluctuated from 
a 1932 low of 35 percent to a 1928 high of 82 percent, the percentage 
tending to fall off in depression. It has previously been noted that 
income was a net disposal of funds after 1930. Investments were a 
net disposal of funds in 1928 through 1931 and again in 1933 and 1934. 
They were a source of funds in the other years. 

Current assets were prim.arily a disposal of funds in the late 
twenties, a source of funds in the eaily years of the depression, a 
disposal of funds again in 1933 and 1934 and a source of funds in the 
recoverv of 1935-36. This item, fluctuates considerably running as 



CONCENTRATION OF ECONOMIC POWER Jgg 

\6w as a 1 -percent source of funds in 1935 and as high as a 26-percent 
source of funds in 1932. Current habihties followed a course con- 
verse to that of current assets. In 1927 and 1928 they constituted 
a source of funds. In the peak prosperity year 1929 and in the depres- 
sion years 1931-32 they were paixl off and'^ therefore constituted a net 
disposal of funds. In the following years they alternated between 
the source and the disposal function. Like the current assets, cwrent 
liabilities fluctuated widely from a 1 -percent disposal in 1934 to a 
29-percent disposal in 1930. An inspection of the working capital 
break-down reveals that inventories were built up, on balance, in the 
late twenties, depleted in the early thirties, 9,nd accumulated, on 
balance, in the 1933-36 period. 

Twenty-seven bakers, 1931-36.— Of the sample of 75 small baking 
corporations picked from the 1930 income tax returns 27 rero.ained in 
operation through the year 1936. A source and disposal statement 
on an aggregate basis of these 27 companies is presented in table 73. 

Depreciation is again a consistently large source, running as high as 
81 percent and not going below 46 percent of the total. S^ock and 
bond flotations were a source of funds only in a few years of the period, 
the former in 1934-36 and the latter in \ 931 and 1933. Retirero.ent 
of stock and bond issues constituted a disposal in the other years. 
The investm.ent item was negligible except as a source of funds in 
1934. The m.ost proro.inent use of funds was capital expenditures, 
which were sizable in each of the years 1931-36, fluctuating from 37 
to 59 percent. Business losses drew upon funds significantly in the 
years 1932-34. 

As in the larger sam.ple, current assets were a source of funds in the 
depression years 1931-32 and a disposal of funds in each of the years 
1933-36. As a disposal of funds they got as high as 45 percent and 
never fell below 11 percent over the period. Current habilities were 
also sizable, occurring as a disposal in the first 2 years of the period 
and a source thereafter. They fluctuated from, a low of 5 percent in 
1935 to a high of 38 percent in 1931. Inventories were depleted in 
the first 2 years of the period. In the years since 1932 they were 
increased, on balance. 

The conclusions to be drawn from, this analysis are simple. Depre- 
ciation and capital expenditures are not only large but consistent as 
sources and uses of funds, respectively. The form.er is in general, 
larger than the latter but not significantly so. Current assets and 
current liabilities play a com.pensatory role, the form.er providing 
fimds in poor tim.es and usmg funds in good tim.es, the latter providing 
funds in good tim.es and using funds in poor tim.es. The fact that 
current assets constituted such a significant disposal of funds in the 
years 1933-34 is worth repeating. 

Small men's clothing companies. 

Forty-six men's clothing companies, 1927-36. — Source and disposal 
statements for a sam.ple of 46 identical m.en's clothing m.anufacturing 
com.panies with 1926 assets less than $250,000 appear in table 74 
covering the years 1927-36. 

Depreciation appears as a surprisingly sm.all source of funds, running 
around $30,000 before the depression and hitting a low of $17,000 — 
less than $400 per com.pany — in 1934. Capital stock and net incom.e 

':o9345— 40— No. 15 12 



Jg4 CONCENTRATION OF ECONOMIC POWER 

are both more sizable. Capital stock was a large source of funds in 
1927 and 1928, a smaller but still significant source of funds in 1929 
and 1930 and again in 1932 and 1936. It was a disposal of funds in 
the years 1931, 1933-35. In the years 1927-30, a total of $203,400 
was obtained through this source. Income appears as a source of 
funds in the prosperous years 1927-29, a disposal of funds in the 
depression j'-ears 1930-33 and a source of funds again in 1934-36. 

Commensurate with the insignificant role played by depreciation, 
capital expenditures constituted a minor item on the disposal side. 
Their high level was $48,000 in 1931, while in 1933 they comprised 
a source of funds to the amount of $23,000. Current assets, invest- 
ments, current liabilities, and income took their turn in absorbing 
the bulk of the funds acquired by these 46 men's clothing manufac- 
turers. Current assets were a disposal of funds in the late twenties, 
a source of funds in the early thirties, and began in'i(1933 to fluctuate 
between the source and disposal side through to 1936. In each year 
current assets comprised a large segment of the total, going no lower 
than 31 percent and rising as high as 95 percent. In 7 out of the 10 
years, current assets comprised more than 70 percent of the total 
source or disposal, as the case may be. 

Current liabilities were also sizable, fluctuating from a low of 12 
percent to a high of 76 percent. In the first 4 years of the period 
1927-30 this item fluctuated between the source and disposal side. 
In the early thirties, however, it was a consistent disposal and in the 
years 1933, 1935, 1936 it was a source of funds. lii 1934 it was a 
largo disposal. 

The item of investments, although running lower than current as- 
sets or current liabilities, nevertheless played a significant role in the 
source and disposal statements of these manufacturers. In general 
it fluctuated between the source and disposal side, but in each of the 
years 1933-36 investments were liquidated, comprising a source of 
hmds for these small companies at a time when business operations 
were expanding. A large accumulation of inventories in the late 
twenties was rapidly depleted in the depression. Some restoration 
was made in 1933, and the rest in 1935 and 1936. 

Twenty-seven men's clothing companies, 1931-36. — As with the 
larger sample, so in this sample of 27 companies commencing in 1931, 
depreciation played a minor role on the source side and capital ex- 
penditures a minor role on the application side of the source and dis- 
posal statement. (See table 75.) More important functions were 
performed by ciurent assets, current liabilities, and investments, al- 
though income, which comprised a disposal in the years 1931-32, was 
fairly prominent in certain years. 

Current assets were a source of funds in the first 2 years, 1931 and 
1932; they made up 95 percent of the disposals in the next; were the 
majo'v source in 1934; and a disposal in the next 2 years, 1935-36. 
In 5 cut of the 6 years they ran higher than 75 percent of the total; 
in the remaining year they were 31 percent. Current liabihties fol- 
lowed a course contrary to ciu'rent assets. They also figured promi- 
nently, totaling 60 percent or more in 4 out of the 6 years and never 
going below 45 percent. Investments followed, roughl3\ the course 
of current assets, alternating between source and disposal. Inven- 
tories were an alternating item. Starting in 1931 as a disposal of 



UONCENTRATION OF ECONOMIC POWER 1^5 

funds, they wound up the period as a source after having changed 
sides in every pair of years. 

The striking conclusion to be drawn from this survey is that the 
men's clothing industry is not a field of manufactm-ing dominated 
by capital equipment. Depreciation and capital expenditures are 
both relatively insignificant items. The current items, investments, 
and income play the major roles in determining the flow of funds 
pattern, and fluctuate widely from side to side of the statement. In 
general their role is that dictated by the business cycle, with current 
assets providing funds in slow times and using them in good times 
and current liabilities providing funds in good times and using them 
in poor times. 

Small Furniture Manufacturers. 

Sixty-six furniture manufacturers, 1927-36. — Source and disposal 
statements for 66 small furniture manufactiu-ers who stayed in exist- 
ence from 1926 to 1936 are presented in table 76, covering the years 
1927-36. 

Depreciation is a modest but consistent source of funds for these 
manufacturing concerns fluctuating from a low of 10 percent to a high 
of 34 percent. It totaled $182,000 in 1929, the high point, and 
$112,000 in 1936, thedow level. Funded debt and capital stock both 
play rather significant roles on the source side. Funded debt was a 
source of funds in the late twenties, a disposal of funds in the early 
thirties, a source of funds again in the first years of the recoveryf 
1933-34, and a disposafof funds in the later years, 1935-36. Capital 
stock displayed a strong tendency to constitute a source of funds. 
After being a disposal of funds in 1927, it became a source of funds in 
1928-30, then a disposal in 1931-32, and a source in 1933-36 during 
the recovery period. 

Capital expenditures, like depreciation, were tolerably small but 
fairly consistent. They varied on the disposal side from a high of 
$336,000 in 1929 to a low of $14,000 in 1935. In 1931 enough plant 
and equipment was sold to bring in a net total of $62,000. As per- 
centage of the total they fluctuated from 2 to 46 percent on the use-of- 
funds side. In 1931, they were a 7 percent source of funds. 

Current assets and current liabilities played rather important roles 
in the source and disposal statements of these manufacturing com- 
panies. Current assets were a disposal of funds in the late twenties, 
a source of funds in the early thirties, and fluctuated between disposal 
and source in the later years. Current liabilities displayed a converse 
pattern. Investments were a source of funds in every year of the 
period except 1928-30 and 1933, when these small furniture companies 
seemed to have been stocking up heavily with securities. The change 
from accumulation to decumulation of inventories came in 1929 and 
continued through 1932. Except for an interruption in 1934, in- 
ventory holdings were augmented in the years after 1932. 

Twenty-eight furniture comvanies, 1931-36.— In the smaller sample 
of 28 companies covering the years 1930-36 depreciation appears 
again as a small but consistent source of funds, never going higher than- 
34 percent nor fallings b^low 17 percent (see table 77). Income was 
a source of funds in ] 933-36. Stock flotations provided funds in, 
everv vear except 'l932, L934, and 1936, but were not particularly 



IQQ CONCENTRATION OF ECONOMIC POWER 

prominent. Funded debt did not provide any funds except in 1934 
and 1936 when 4 and 21 percent, respectively, of the total fimds were 
derived from this source. Long-term debt retirements absorbed 
funds in the other years, but never more than 1 or 2 percent of the 
total application of funds. 

Current assets and current liabilities again played important roles. 
Current assets provided three-fourths of the total funds in 1931 and 
1932 and in the next year comprised 90 percent of the total use of funds. 
In 1934 they again provided 46 percent of the total funds and in the 
next 2 years consumed about three-fourths of the funds acquhed. 
Current liabilities, although not quite so large, were on the opposite 
side of the use-and-disposal statement in each year. 

Although depreciation and capital expenditures constituted rela- 
ti^ly consistent and tolerably commensurate sources and uses of 
funds respectively for these small furniture manufactiu-ers, they were 
not large and in 2 years were so low as to be practically negligible. 
In 1 year, moreover, the capital account was a sizable source of funds. 
Current assets and current liabilities, on the other hand, were large 
but fluctuated from one side of the statement to the other in their role 
compensatory to the business cycle. The capital markets appear to 
have been tapped only in the good times. 

Small Stone-Clay Companies. 

Seventy stone-clay companies, 1927-36. — Of the 200 stone-clay com- 
panies in the original 1926 sample of small manufacturing corporations, 
70 remained in existence through 1936. Source and disposal state- 
ments on an aggregate basis for these 70 companies appear in table 78 
covering the years 1927-36. 

Depreciation generally comprised a fairly large proportion of the 
total source of funds for these clay-products companies. In one year 
(1935) 88 percent of the funds were derived from depreciation, but 
during the depression period this source of funds ran lower than 40 
percent of the total. The size of the depreciation item probably 
explains in large part the fact that very little of the funds -of these cor- 
porations was ob tamed from net income. They usually absorbed 
funds in financing business losses. 

The parallel to the important position occupied by depreciation 
appears in the role played by capital expenditures on the disposal side 
of the statement. This item, though not quite as sizable a disposal as 
depreciation was a source, nevertheless was as high as 75 percent of 
the total application of funds in 1927. Over the decade, however, 
capital expenditures fall off and reached a low point of 6 percent of the 
total disposals in 1935. 

Income, we noted, is more often on the disposal than on the source 
side of the statement. The current items, although still a shifting lot, 
nevertheless were tolerably large. Current assets were a disposal 
of funds in 1927-28, a source of funds in the next 6 years, 1929-34 
and a disposal of funds in the next 2 prosperity years. In all of these 
years except 1927 and 1930, moreover, this item was large. Current 
liabilities were generally not large and followed a pattern roughly 
opposite to that of the current-asset item. Inventories were built up 
through 1930. In the next 6 years, except 1934, however, drafts were 
made upon these stocks. 



CONCENTRATION OF ECONOMIC POWER IQ'J 

Thirty stone-clay companies, 1931-36. — In the smaller sample of clay- 
products companies, depreciati(Ai again appears a consistent but rela- 
tively small source of funds, running as low as 21 percent and never 
going over 39 percent in the 1931-36 period (see table 79). This is 
a somewhat different picture from that portrayed by the larger 
sample of 70 companies and may be due to the heterogeneity of the 
industry. It will be noted, moreover, that a similar discrepancy in 
the failure experiences of these two samples was found. The failure 
rate of the larger sample was above the average, while that of the 
smaller sample was not only below the average, but constituted a 
better showing than that by any other industry. 

On the disposal side appears another striking disparity between this 
sample of 30 companies and the other sample of 70 firms. Capital 
expenditures, which for the major sample were a consistent though 
diminishing disposal of funds, appear not only as a smaller item lor 
the 30-company sample but also appear as sources of funds in certain 
years of the period. In 1931'-32 capital expenditures were a disposal 
of fimds. In the next 2 years they were sizable sources of funds. In 
1935 they were a disposal of funds and in 1936 a 14-percent source of 
funds again. The principal disposal of funds for these companies 
seems to have been the income item, a disposal in every year of the 
period except 1936. As a disposal it got as high as 85 percent and 
never fell below 60 percent. Capital stock was a source of funds in 
the first 2 years 1931-32 and appeared as a disposal of funds in the 
next 4 years, 1933-36. 

The current items fluctuated surprisingly little. The current assets 
were a source of funds m the first 3 years, ranguig from 5 to 71 percent. 
In the last year they were a 33-percent disposal. Current liabilities 
were a source of funds m the first year, 1931, a disposal in the next 
year, and a source of fimds in each of the following 4 years. This 
relatively consistent role played by the current items is not surprising. 
It carries over, moreover, to the inventory item. Depletion of inven- 
tories took place in the first 3 years of the period and again in 1935, 

The principal conclusion to be drawn from this survey is that the 
large and small samples of these clay products' companies may not 
be comparable with respect to their source and use of funds state- 
ments. The reason for this incomparability is not clear, but further 
evidence of it may be found in a compaifison of the failure experience 
of these samples. It seems that the discrepancy between these sam- 
ples is a pervasive one, and is not limited solely to the flow of funds 
pattern. Taking the larger sample as more representative, we find 
that (1) depreciation was the major source and capital expenditiu-es 
on important but decreasing disposals; (2) cm-rent assets were large, 
current liabilities small and both were quickly responsive to the busi- 
ness cycle; and (3) the large depreciation expense explains the rela- 
tively small income and helps to clarify the poor profit results exhibited 
in an earlier chapter by these companies. 

Small Machine-tool Companies. 

One hundred and eighteen machine-tool companies, 1927-36.— ^h& 
origmal sample of 200 machine-tool companies in 1926 seems to have 
withstood the depression the best of these five industries, if number 
of failures is used as a criterion. Of the original 200 companies, 118 
remained in existence through 1936. Source and disposal of funds 



16§v , CONCENTRATION OF ECONOMIC POWER 

statements for the 118 companies combined appear in table 80 for the 
years 1927-36. 

Depreciation comprised a sizable source of funds in ^very year of the 
period. It was more than half of the total in 1927, about one-fourth 
in 1929 and 1930, and a tliird or more in the other years. In dollar 
terms it reached a liigh of $410,000 in 1929 and a low of $240,000 in 
1934. The year 1934 represents opposite extremes for this item. It 
was highest ui percentage terms '(89 percent) and smallest in dollar 
terms. Funded debt also comprised a source of funds in 1927-29 and 
again in 1932 and in 1936. In other years of the period funds were 
employed to retire long-term debt. Capital stock was a source of 
funds in the years 1927-30, 1932, and 1934-36 wliich is a surprising 
showing for this item. In the few remaming years capital stock seems 
to. have been retired. Income was a source of funds in the late 
twenties, a disposal of funds in the 5 years 1930-34, and a source of 
funds again in 1935-36. 

Capital expenditures were a widely fluctuating disposal of funds. 
In some years, for example 1927, 81 percent of the funds were utilized 
in this manner, whereas in 1932 the net property account was a dis- 
posal of funds only to the amomit of 1 percent, or $9,000. 

Current assets were a disposal of funds in the late twenties, a source 
of funds in the early depression years, and a disposal of funds in the 
late depression years, appearing as fairly sizable items in each year. 
With the exception of 1927, current assets ran 23 percent or more of 
the source or disposal in every year. In 3 years they ran 50 percent 
or more of the total. Current liabilities played a role roughly com- 
pensatory to that of current assets. Investments, Uke current assets,, 
were accumulated through 1930, liquidated in 1931-33, accumulated 
in 1934 and 1935, and liquidated in 1936. Inventory holdings in- 
creased until the onset of the depression. In 1930-32 heavy liquida- 
tion of inventories took place. Little activity appeared in this item 
thereafter until 1936 when stocks were augmented considerably. 

Twenty-three machine-tool companies, 1931-36. — The source and 
disposal of funds statement for the snialler sample of machine-tool- 
manufacturing companies parallels closely that for the large sample 
(see table 81). Depreciation com,prised one-third of the sources in 
1931, a fourth in 1932 and 1934, and a half in 1933, 1935, and 1936. 
Capital stock was a source of funds in 1931-35 and a disposal in the 
last year. Net income was a sizable disposal of funds through 1934 
and a source of funds thereafter. Capital expenditures were a signifi- 
cant disposal of funds in ev^ery year except 1932, when plant and 
equipm.ent were hquidated to provide funds. 

V Current assets were liquidated in the years 1931, 1932, and 1934, 
therefore appearing as a source of funds. They were accumulated, 
however, in the other years and absorbed a large proportion of the 
available funds. Current liabilities were paid off in 3 out of the 6 
years, appearing as a disposal of funds. They were incurred, how- 
ever, in 1931, 1933, and 1935, and brought in a third of the funds in 
1933 and 1935. Investments appear to have been liquidated through- 
out the period^ thereby providing funds. Inv-entory holdings were 
depleted to bring in funds in 3 years of the period, 1931, 1932, and 1934. 
In the other years m.odest sums were devoted to restoring stocks of 
unfinished and finished goods. 



CONCENTRATION OF ECONOMIC POWER JgQ 

Several conclusions may be drawn from these tabulations covering 
two identical samples of machine-tool companies. Current assets 
were accumulated in prosperity and liquidated in depression. Long- 
term debt and •capital-stock flotations were undertaken in good times 
and retired in bad tiro.es, although the latter item was a surprisingly 
persistent source of funds. Depreciation was the ro.ost stable source, 
fluctuating from a quarter to a half of the total. Current liabilities 
appeared as a source in 7 of the 10 years, in prosperity as well as in 
depression. Incoro.e was a source in good times but not in periods 
of slow business. Investments were unimportant but appeared to 
act, in response to the business cycle, as do current assets. 

COMPARISON OF LARGE WITH SMALL COMPANIES 

Four of the industrial groups included m the sample of S. E. C. 
registrants correspond more or less closely with those in the samples 
of small manufacturing corporations. Moreover, their source and 
disposal of funds statements overlap for the year 1936 in every in- 
stance, and for the year 1935 in every industry but one, men's clothing. 
In this section the source and disposal statements of the sample of 
large manufacturing corporations will be compared, industry by 
industry, with the corresponding statements for the saro.ple of small 
manufacturing corporations.' The coro.parison will consist of listing, 
side by side for large and smaU companies, the largest and the next 
largest sources for each year, the largest and next largest disposals-, 
and the role (either source or disposal) played by inventory. The 
percentage which each item bears to the total source or disposal of 
Cunds is also given in the following tabulation. 

Large Companies Small Companies 

8 large and 81 small bakeries 

SOURCES 
Percent Percent 

1935: Depreciation 67 Depreciation 72 

Current assets 13 Investments 14 

1936: Depreciation 59 Depreciation 84 

Current liabilities 25 Capital stock 9 

DISPOSALS 
Percent Percent 

1935: Capital expenditures ..-- 52 Capital expenditures 81 

Funded debt 44 Business losses 11 

1936: Capital expenditures 52 Capital expenditures 73 

Funded debt.- 33 Current liabilities 1» 

INVENTORY 

1935: Disposal Source 

1936: Disposal Disposal 

16 large and 46 small men's-clothing manufacturers 

SOURCES 



Percent 



Percent 



1936: Current liabilities 57 Current liabilities... — 74 

Net income 25 Income and investments, eacti._ » 

' In the case of the stone-clay companies, the sample of large companies ^"'be compared with each'of 
the 2 samples of small companies separately. In the cases of the other industries, the sample of large 
companies will be compared only with the larr.er of the 2 samples of small companies. 



170 CONCENTRATION OF ECONOMIC POWER 

Large Companiks Small Companies 

disposals 

Percent Percent 

1936: Current assets 60 Current assets 86 

Investments 26 Capital expenditures 10 

INVENTORY 

1936: Disposal Disposal 

9 large and 70 small stone-clay companies 



Percent Percent t 

jtJo: Depreciation _. _. 59 Depreciation 88 

Capital b cock !_- 22 Other liabilities 4 

1936: Depreciation 35 Depreciation 59 

Cui rent liabilities 29 Net income 22 

DISPOSALS 

Percent Percent 

1935: Funded debt _ 33 Current assets 47 

Current assets 29 Business losses 39 

1936: Current assets 67 Current assets 48 

Capital expenditures 19 Capital expenditures ^.- 28 

INVENTORY 

1935: Disposal Source 

1936: Disposal Source 

9 Large and 30 small stone-clay companies 

SOURCES 

Percent Percent 

1935: Depreciation 59 Depreciation 39 

Capital stock 22 Current liabilities 24 

1936: Depreciation 35 Current liabilities 42 

Current liabilities 29 Depreciation 26 

DISPOSALS 

Percent Percent 

1935: Funded debt 33 Business losses 62 

Current assets 29 Capital expenditures 34 

1936: Current assets 67 Capital stock 48 

Capital expenditures 19 Current assets 33 

INVENTORY 

1935: Disposal Source 

1936: Disposal Disposal 



79 large and 118 small machine-tool companies 



Percent Percent 

1935: Depreciation 38 Depreciation 36 

Current liabilities 32 Net income 29 

1936: Current liabilities 31 Depreciation 28 

Capital stock 29 Current liabilities 25 



CONCENTRATION OF ECONOMIC POWER 171 

Large Companies Small Companies 

disposals 

Percent Percent 

1935: Current assets 53 Current assets 61 

Capital expenditures 31 Capital expenditures 30 

1936 : Current assets - 43 Current assets 59 

Capital expenditures- 29 Capital expenditures 40 

INVENTORY 

1935: Disposal Source 

1936: Disposal Disposal 

It will be observed that there are marked similarities between the 
source and disposal patterns for the large and small corporations. In 
every industry except stone-clay the major item of source and of 
disposal in each year (except 1936 for machine tool) is the same for 
both the large and small companies. There is frequently a difference, 
however, between the next largest item of source and of disposal, 
as between the two samples. The large bakeries procured funds 
through their current items and applied funds to retiring their funded 
debt. Ttiis characteristic is not found in the small bakeries. The 
large machine-tool companies relied nore heavily than the small 
companies on current liabilities for their funds. The disposal pattern 
for these companies, as well as the entire flow of funds patterns for 
the large and small men's clothing manufacturers, are remarkably 
similar. The discrepancies between the samples of large and small 
stone-clay companies are not surprising in view of the differences 
between the two samples of small companies. In general, the flow of 
funds pattern of the large companies seems to correspond more closely 
with that of the smaller sample of 30 small stone-clay firms than with 
that of the larger sample of 70 small stone-clay companies. This may 
be'a point in favor of the smaller sample of small stone-clay companies. 
The role played by the inventory item is tolerably similar as between 
the large and small companies, except in the case of the 9 large and 70 
small stone-clay firms, where inventories played opposite roles. 



SUMMARY 

This survey of the financial characteristics of American manu- 
facturing corporations has been devoid of any startling conclusions 
or epochal findings. The factual treatment accorded the subject 
was designed to acquaint the reader with the financial structure of 
industry. as it is, and not as it ought or might be. This concluding 
seqtion, therefore, is not a body of recommendations or a statement 
of weaknesses in our producing economy, but merely a collation of 
some of the broad generalizations advanced in this report. It need 
hardly be said that most of these generalizations Can be seriously 
misleading unless the reader examines also their qualifications set forth 
in the body of the report. 

In the aggregate, over a period of years, American manufacturing 
corporations earn a sizable rate of return on their equity capital, 
running more than 4 percent. Some industrial subgroups such as food 
are much more profitable than others, such as lumber. Moreover, 
some industries are subject to wider fluctuations in profits than others. 
There are wide fluctuations in profits for particular companies. 
In 1929, more than a fourth of 'a sample of 400 large firms earned 
15 percent or more on their total invested capital, while in 1932 more 
than half were in the red even before fixed charges had been met. 
In the prosperous year 1929, more than a third of the 742 firms in a 
sample of small manufacturers failed to earn a penny on their equity. 

Large corporations are generally more profitable than small ones. 
Contrary conclusions reached by some analysts are due to a bias in their 
samples toward the more profitable firms. Of these more successful 
firms, profitability does decrease slightly with asset size; but of all 
firms, the converse relationship holds. This progression of the profit 
rate with size is found in the return on equity and on total capital. 
Where, however, compensation of officers is included with profit 
before fixed charges, profitability, thus defined shows a modest 
tendency to decrease with increasing asset size. This factor niay 
explain why small firms continue in business for years without making 
a net profit on equity. 

The proportion of earnings paid out in dividends fluctuates violently 
with the business cycle, due primarily to gyrations in the denominator 
of this ratio. To the better-known factors influencing dividend dis- 
bursements, such as profits, size of surplus, and special factors as the 
undistributed-profits tax, must be added another influence: liquidity 
position. The evidence indicates that the strength of the Hquidity 
ratio helps determine whether cash dividends shall be paid. 

By 1936 all manufacturing companies in the aggregate had failed to 
restore their current ratio position of 1933, not to mention that of 1929. 
The current ratio of the medium-size corporations made the best show- 
ing. It was not only relatively high, but also best withstood the 
ravages of businesi depression. Among particular companies there are 
wide differences in the size of the current ratio. Most of the firms in 

173 



I'J^ CONCENTRATION OF ECONOMIC POWER 

a sample of large corporations do not derive any of theii* working 
capital from notes payable. The proportion of abstainers in this 
respect, moreover, is relatively constant. Unlike the current ratio, 
the turn-over ratios of American manufacturing corporations had 
regained their predepression standing by 1936. 

Among manufacturing corporations the proportion of owned to 
borrowed capital runs about 4 to 1. Approximately a third of the 
owned capital is derived from paid-in and earned surplus and undis- 
tributed earnings. Of the total borrowed or outside capital, cm-rent 
debt comprises slightly more than a half. The largest corporations, 
with assets over $50,000,000, exhibited an interesting trend over the 
six years 1931-36: their proportions of o\\Tied to borrowed capital 
and of surplus to owned capital both declined in the face of an increas- 
ing proportion of current to total debt. The experience of a sample 
of small manufacturing corporations indicates that funded debt has 
been a growing source of capital over an 11-year period. American 
manufacturing corporations hold in the aggregate about a half of their 
invested capital in the form of land, plant, and equipment, but rela- 
tively more of their capital is invested in fixed than in current assets. 
In general, a direct relationship between the trends in sales and in net 
property account was found for a sample of 175 large firms. There 
were a few exceptions, but some of these could be explained by special 
circumstances. If there was any tendency away from this relation- 
ship, it was in the direction of conservatism in expanding fixed plant. 

In the recovery years, 1935-37, a sample of 525 large oorporations 
exhibited a strong tendency toward devoting a large portion of their 
funds to building up current assets, particularly inventory and re- 
ceivables. This tendency appears to have been reversed in the next 
year, capital expenditures taking the bulk of the funds, even though, 
in dollar amount, they decreased. In general, net income plus de- 
preciation provides enough funds to cover capital expenditures, but 
there are exceptions to this rule in particular industries in particular 
years. The capital markets, a relatively minor source of funds in 
the early phase of the recovery, assumed a more important role in 
the later years. 

Sample tabulations indicate that there are industrial differences in 
the flow of funds patterns for small manufacturing corporations. 
Although depreciation is the chief source of funds and capital expendi- 
tures the principal disposal, these items play more important roles, 
relatively, in the machine tool and stone-clay industries than in the 
baking and men's clothing industries. In these latter industries the 
current items take a particularly important part, while in all five 
industries studied their influence can hardly be ignored. In general, 
the current assets are built up during prosperous years at the same 
time that current liabilities are increased; and the current assets are 
liquidated during depression years concurrently with a retirement of 
current debt. The patterns for the small companies are tolerably 
similar to those for the large firms. 



APPENDIX A 

CORRECTION FOR NONREPORTING OF BALANCE SHEETS 
IN STATISTICS OF INCOME 

A knotty problem in the calculation of corporate profitability ratios 
from Statistics of Income tabulations for years prior to 1931 arises 
from the fact that the profit figures apply to a larger group of corpora- 
tions than are covered by the capitalization figures. This is because 
some corporations that file income tax returns do not submit balance 
sheets therewith. In 1931 and subsequent years this inconsistency 
between the income statement tabulations and the balance sheet data 
has been ironed out by presenting two sets of income statement tabu- 
lations, the one for all reporting active corporations and the other 
for those reporting corporations which submitted balance sheets with 
their returns. 

The problem is to eliminate as far as possible this heterogeneity 
from the profit-to-capitalization ratios in the years 1926-30. There 
are two broad alternative approaches to this problem. The first 
would be to adjust the numerator so that it would include only the 
profits (or losses) of the so-called balance-sheet returns. The other 
alternative is to increase the denominator so that it comprehends the 
capitalization figures not only of the balance-sheet returns, but also 
of the nonbalance-sheet returns. Although pursuance of either al- 
ternative will result in an arbitrary adjustment, the second seems 
preferable for several reasons. Application of the former alternative — 
adjusting the numerator to cover a smaller number of corporations — 
would mean a reduction in the coverage, and probably in the repre- 
sentativeness, of the resulting profitability ratio. Moreover, appli- 
cation of the former alternative is relatively impracticable because, as 
indicated by the tabulations for 1931 and later years, the ratio of 
compiled net profits (less tax) for all balance-sheet returns to the 
same item for all reporting corporations is subject to wide variations. 
Thus, for all manufacturing corporations, tliis ratio stood at 91 per- 
cent in 1931, jumped to 125 percent in 1933, and fell back to 101 
percent in 1935. It would obviously b6 hazardous to extrapolate such 
a ratio backward from 1931. On the other hand, the second alterna- 
tive — adjusting the denominator to cover a larger number of corpo- 
rations — does not suffer so violently from either of these defects. It 
not only maintains the complete coverage of reporting corporations, 
but also the ratio of the incomplete to the complete capitalization 
figure could not be expected to undergo such precipitous fluctuations 
incidental to the course of the business cycle. An objection to in- 
flating the numerator, however, arises from the fact that so doing 
will make the 1926-30 coverage inconsistent with that for 1931-36. 
In the latter period only balance-sheet corporations are included. In 
the former, all reporting corporations would allegedly be included. 
Since the corporations excluded from the latter period but included 
in the former are probably unprofitable, the adjusted profit ratios for 
the years 1926-30 may be expected to be understated slightly, rela- 
tive to those for the years 1931-36. 

This problem was faced by Epstein, and resolved by a procedure 
based on the second method : The denominator was raised in coverage 
to be comparable with the numerator (see appendix A, pp. 601-602 
of his Industrial Profits in the United States). Epstein "stepped up" 

175 



276 CONCENTRATION OF ECONOMIC POWER 

the capitalization figures by ascertaining the ratio of total number of 
returns filed to number of returns with balance sheets, and then by 
applying this ratio to the total capitalization of the corporations sub- 
mitting balance sheets. The derivation of this "estimated" capital- 
ization of all reporting corporations involved "the assumption that, 
the average capitalization per company of the companies that filed 
balance sheets is no larger or smaller than of those that did not." 
This assumption was admittedly at variance with the fact that the 
corporations not submitting balance sheets were probably "relatively 
small." Therefore, Epstein struck an arithmetic average between 
this "estimated" capitalization and the "not stepped up" capitaliza- 
tion and considered this mean as the most accurate available measure- 
ment of the actual capitalization of the reporting corporations. 

It would seem, however, that Epstein's final mean is still somewhat 
of an exaggeration of the a'ctual capitalization. If one considers gross 
sales rather than number of returns, the percentage of coverage as 
between the balance-sheet and no-balance-sheet returns is about 99 
percent over the period 1931-36, not only for all manufacturing 
corporations but also (with a few minor exceptions) for each of the 
subgroups: Foods, textiles, forest products, stone-clay-glass products, 
and metal products. One wonders whether this relationship may not 
be a better guide to the amount by which the published capitaliza-' 
tion figure should- be stepped up in order to make it comparable with 
the profits figure. 

It can be demonstrated that multiplying the published capitaHza- 
tion figure by the ratio of sales of all reporting companies to sales of 
balance-sheet companies would give a correct figure for the capitali- 
zation of all reporting companies provided the sales to capitahzation 
ratios for the no-balance-sheet companies averaged the same as those 
for the balance-sheet companies. 

To test the validity of this assumption, turn-over ratios were com- 
puted for all manufacturing corporations in 1931, with break-downs 
according to income and no income companies and further according 
to asset size. The former break-down revealed little of major sig- 
nificance; the sales to equity ratios for the income companies Av»ere 
slightly above those for the no-income concerns. The asset size 
break-down revealed, however, that the smallest companies had a 
turn-over five times that of the largest, and about four times that of 
all companies. Since we may expect the no-balance-sheet companies 
to be in this smaller-size group, it is possible that their turn-over ratio 
is larger than that for all companies. But the fact that they are 
probably less active would mean that their turn-over ratio was prob- 
ably less than that of the active small-balance-sheet companies. 

In order to test the significance of this qualification of our basic 
proviso, a calculation of an average tum-over ratio for all companies 
was made on the assumption that all the no-balance-sheet companies 
fell into this smallest-size class and had a tum-over ratio characteristic 
of that size class. The resulting tum-over figure was changed 
only about 1 percent — from 0.869 to 0.878 — even though it was 
assumed that the no-balance-sheet companies had an average turn- 
over characteristic of that for the smallest class. This assumption 
probably exaggerates the turn-over of the no-balance-sheet corpora- 
tions, -which means that even the 1-percent differential above noted 
overstates the actual discrepancy. Therefore it seems safe to con- 
clude that a stepping up of published capitfi^lixiition figures, on the 



CONCENTRATION OF ECONOMIC POWER 



177 



basis of this assumption, would not miss the mark very far. But it is 
not daimed that such an adjustment hits the bull's-eye. 

Once the ratio of reporting-company sales to balance-sheet-company 
sales is condoned as the inflation factor for the capitalization figure, 
the remaining problem becomes one of extrapolating this ratio back- 
ward from 1931 through 1926. One possible guide to the movement 
of this ratio is the relationship of the number of returns filed to the 
number filed with balance sheets. This ratio-is available for all years 
1926-36. Unfortunately, however, the correlation in the period 
1931-36 between this ratio and that indicating sales coverage of the 
balance-sheet returns is slight, as a glance at the accompanying table 
A-1 indicates. Apparently the sales-coverage ratio is influenced by 
factors other than the relative number of returns filed with balance 
sheets. However, in each industrial class except metals the sales 
latio hovered around 101 percent, and for metals around 100.5 per- 
cent. Therefore, perhaps these average standings would be as satis- 
factory for stepping up factors as any figures derived by mathemati- 
cally complex methods. Moreover, since our basic assumption 
concerning turn-over is subject to some qualification, we are under 
no delusions, in any case, concerning the accuracy of our adjusting 
procedure. 

Table A-1. — Ratio of number and of sales of all returns to balance-sheet returns, 
manufacturing and 6 subgroups, 1926-31 





Total manu- 


Foods 


Textiles 


Lumber 


Stone clay 


Metals 


Year 
















Returns 


Sales 


Returns 


Sales 


Returns 


Sales 


Returns 


Sales 


Returns 


Sales 


Returns 


Sales 


1936 


107.8 


1(2,8 


110.0 


102.3 


106.2 


102.2 


107.2 


101.9 


107.6 


105.6 


106.3 


102.3 


1935 


106.8 


U1,0 


109.0 


101.4 


105.7 


101.0 


106.2 


101.3 


106.6 


100.8 


104.6 


100.5 


1934 


106.8 


101.3 


1C9.2 


102.1 


105.6 


101.4 


105.8 


100.9 


106.6 


101.6 


104.6 


100.5 


1933 


107.0 


100.8 


109.7 


100.8 


105.7 


100.9 


105.8 


100.9 


106.5 


100.6 


104.6 


100.3 


1932. 


107.1 


100.6 


110.0 


100.7 


106.5 


101.0 


105.3 


100.9 


106.2 


100.9 


104.5 


100.3 


1931 


111.2 


101.3 


115.8 


101.1 


110.4 


102.2 


108.8 


102.3 


109.8 


101.7 


107.5 


100.7 


1930 


107.0 




110.4 




105.3 




105.6 




106.4 




104.6 




1929 


107.1 




110.7 




105.0 




105.6 




107.0 




104.6 




1928 


107.8 




111.4 




105.4 




106.5 




107.8 




105.3 




1927 


105.9 




109.5 




104.3 




104.2 




105.7 




103.8 




1926 


110.7 




114.8 




106.7 




108.5 




108.8 




108.4 





Application of the method outlined here to the present tabulations 
merely involved multiplying the 1926-30 unadjusted figures for capital 
stock and surplus by 101 percent in the case of total manufacturing, 
foods, textiles, lumber, and stone-clay, and by 100,5 percent in the 
case of metals.. Such stepping-up is rough, but it is at least in the 
right direction and is very unlikely to exceed the true capitalization 
figure. 

The net worth figures in table 22 of this report do not need a similar 
adjustment, because the ratio of dividends paid by reporting corpora- 
tions to dividends paid by balance-sheet corporations is not signifi- 
cantly greater than 100 percent in any of the years 1931-36 for any 
of the industrial groups, 'It may be noted that failure to adjust the 
net-worth figures in the present instance has the effect of making the 
dividend sample for 1926-30 comparable with that for succeeding 
years, in that only balance-sheet corporations are considered. Finally, 
an even more important problem in connection with the dividend 
ratio is that raised by no-par stock; so the present problem of balance' 
sheet coverage can well be waived. 



APPENDIX B 



COMPANIES INCLUDED IN STANDARD STATISTICS CO.'S 
COMPOSITE OF FINANCIAL STATEMENT AS OF DECEM- 
BER 31, 1938 



Advertising, printing, and publishing 
(7): 

Conde Nast Publications. 

Cuneo Press. 

Curtis Publishing. 

General Outdoor Advertising. 

Intertype Corporation. 

McCall Corporation. 

Mergenthaler Linotype. 
Automobiles and trucks (13) : 

Auburn Automobile. 

Chrysler Corpora.tion. 

Federal Motor Truck. 

General Motors. 

Graham Paige. 

Hudson Motor. 

Hupp Motor Car. 

Mack Trucks. 

Nash-Kelvinator. 

Packard Motor Car. 

Reo Motors. 

White Motors. 

Yellow Truck. 
Automobile parts and accessories (27) : 

Bohn Aluminum. 

Briggs Manufacturing. 

Budd Manufacturing. 

Budd Wheel. 

Campbell, W3'ant & Cannon. 

Eaton Manufacturing. 

Electric Auto-Lite. 

Electric Storage Battery. 

Evans Products. 

Gabriel Co. 

Hayes Body. 

Libby-Owens Ford. 

Marlin Rockwell. 

Martin Parry. 

Midland Steel Products. 

Motor Products. 

Motor Wheel. 

Mullins Manufacturing. 

Murray Corporation. 

Ross Gear & Tool. 

Smith (A. O.). 

Spicer Manufacturing. 

Stewart Warner. 

Thompson Products. 

Timken Roller Bearing. 

Trico Products. 

Young (L. A.) Spring & Wire. 

'178 



Automobile tires, rubber goods, etc 
(10): 

Firestone Tire. 

General Tire & Rubber. 

Goodrich. 

Goodyear. 

Intercontinental Rubber. 

Lee Rubber. 

Mohawk Tire. 

Norwalk Tire. 

Seiberling Tire. 

United States Rubber. 
Beverages (alcohol and soft drinks) (4)j 

Coca-Cola. 

Hires (Charles E.). 

National Distillers. 

Park & Tilford. 
Building and equipment (22) : 

Alpha Portland. 

Barber Co. 

Lehigh Portland. 

Lone Star Cement. 

Penn-Dixie. 

American Seating. 

Blaw-Knox. 

Celotex. 

Certain-teed Products. 

Crane Co. 

Devoe & Reynolds. 

Equitable Office Building. 

Foundation Co. 

Glidden Co. 

Illinois Brick. 

Johns-Man ville. 

Otis Elevator. 

Pittsburgh Plate Glass. 

Sherwin-Williams. 

United States Gypsum. 

Walworth. 

Yale & Towne. 
Chemicals and fertilizer (19): 

Air Reduction. 

Allied Chemical. 

American Cyanamid. 

Atlas Powder. 

Columbian Carbon. 

Commercial Solvents. 

Du Pont. 

Freeport Sulphur. 

Hercules Powder. 

Mathieson Alkali. 



CONCENTRATION OF ECONOMIC POWER 



179 



chemicals and fertilizer (19) — Con. 

Texas Gulf Sulphur. 

Union Carbide. 

United Carbon. 

United States Industrial Alcohol. 

Vulcan Detinning. 

Westvaco Chlorine. 

International Agricultural. 

Tennessee Corporation. 

Virginia-Carolina Chemical. 
Containers (3) : 

American Can. 

Continental Can. 

Thatcher Manufacturing. 
Electrical equipment and radio (10): 

Cutler-Hammer. 

Formica Insulation. 

General Electric. 

Westinghouse Electric & Manu- 
facturing. 

Weston Electrical Instrument. 

American Bosch. 

Crosley Radio. 

Hazeltine Corporation. 

Radio Corporation of America. 

Stromberg- Carlson . 
Food products (27) : 

Continental Baking. 

Loose- Wiles. 

National Biscuit. 

United Biscuit. 

Ward Baking. 

American Chicle. 

Brach (E. J.) & Sons. 

Sweets Co. of America. 

Wrigley. 

Beatrice Creamery. 

Borden Co. 

National Dairy. 

Armour & Co. 

Cudahy Packing. 

Swift & Co. 

Wilson & Co. 

Beechnut Packing. 

California Packing. 

Corn Products Refining. 

General Foods. 

Libby, McNeil & Libby. 

Mead Johnson. 

Penick & Ford. 

Quaker Oats. 

Seeman Bros." 

United Fruit. 

Wesson Oil. 
Household products (16): 

Artloom Corporation. 

Bigelow-Saiiford. 

Congoleum Nairn. 

Mohawk Carpet. 

American Ice. 

City Ice-& Fuel. 

Advance Aluminum Castings. 

Airway Electric. 

Bon Ami. 

Diamond Match. 

Eureka Vac.ium. 

Maytag. 



Household products (16) — Continued. 

Proctor & Gamble. 

Simmons Co. 

White Sewing Machine. 

Williams Oil-O-Matic. 
Leather and shoes (7) : 

Amalgamated Leather. 

Brown Shoe. 

Endicott- J oh n son . 

Florsheim Shoe. 

International Shoe. 

Kinney (G. R.) 

Melville Shoe. 
Machinery (25): 

Case '(J. L). 

Deere & Co. 

International Harvester. 

Allis-Chalmers. 

American Machine & Foundry. 

Babcock & Wilcox. 

Bliss (E. W.). 

Briggs & Stratton. 

Caterpillar Tractor, 

Chicago Pneumatic Tool. 

Fairbanks Morse. 

Foster Wheeler. 

IngersoU-Rand 

Link Belt. 

Marion Steam Shovel. 

National Acme. 

National Supply (Del.). 

Niles Bement-Pond. 

Northwest Engineering. 

Seagrave Corporation. 

Transue & Williams. 

United Engineering & Foundry. 

United Shoe Machinery. 

United States Hoffman. 

Worthington Pump. 
Medicines, drugs, and cosmetics (5) : 

American Home Products. 

Coty/ 

Lambert. 

Lehn & Fink. 

Parke, Davis. 
Metals (nonferrous) (21): 

American Zinc. 

Anaconda Copper. 

Bunker Hill & Sullivan. 

Calumet & Hecla. 

Cerro de Pasco. 

Federal Mining. 

Howe Sound, 

Inspiration Consolidated Copper. 

Kennecott. 

Magma Copper. 

Miami Copper. 

Phelps Dodge. 

St. Joseph Lead. 

Aluminum Co. of America. 

American Metal. 

American Smelting and Refining. 

Butte Copper. 

Hecla Mining. 

Parke Utah. 

United States Smelting. 

Vanadium. 



2-".9845 — 40— No. 1-5- 



-13 



180 



CONCENTRATION OF ECONOMIC POWER 



Miscellaneous (24) : 

American Bank Note. 

American Chain & Cable. 

American Safety Razor. 

Atlas Plywood. 

Atlas Tack. 

Brunswick-Balke. 

Driver-Harris. 

Eastman Kodak. 

General Refractories. 

Harbison Walker. 

Hollander (A.). 

International Salt. 

Internatiooal Silver. 

Liquid Carbonic. 

Mengel. 

National Enameling. 

National Lead. 

Remington Arms. 

Savage Arms. 

Wahl Co. 

Consolidated Laundries. 

New York Dock. 

United States Distributing. 

United States Freight. 
Office and business equipment (9j : 

Art Metal Construction. 

Burroughs Adding Machine. 

General Fireproofing. 

International Business Machines. 

National Cash Register. 

Pitney-Bowes. 

Remington Rand. 

Royal Typewriter. 

Telautograph. 
Oil producing and refining (25) : 

Amerada. 

Atlantic Refining. 

Barnsdall Oil. 

Consolidated Oil. 

Gulf Oil. 

Houston Oil. 

Humble Oil. - 

Indian Refining. 

Indiana Pipe Line. 

Mid-Continent Petroleum. 

Ohio Oil. 

Phillips Petroleum. 

Pure Oil. 

Shell Union. 

Skelly Oil. 

Socony Vacuum. 

Standard Oil of California. 

Standard Oil of Indiana. 

Standard Oil of Kentucky. 

Standard Oil of New Jersey. 

Standard Oil of Ohio. 

Sun Oil. 

Texas Corporation. 

Tide Water Associated. 
--^Union Oil of California. 
Paper and paper products (3) : 

Container Corporation. 

Scott Paper. 

Union Bag «fe Paper. 



Railroad equipment (10): 

American Brake Shoe. 

American Locomotive. 

American Steel Foundries. 

Baldwin Locomotive. 

General American Transportation. 

General Railway Signal 

Lima Locomotive. 

New York Air Brake. 

Union Tank Car. 

Westinghouse Air Brake. 
Shipping and shipbuilding (7) : 

American Hawaiian Steamshiji. 

American Ship Building. 

Atlantic Gulf & W. I. 

Eastern Steamship. 

Ellectric Boat. 

New York Shipbuilding. 

Todd Shipyards. 
Steel and iron (17) : 

Acme Steel. 

American Rolling Mill. 

Bethlehem Steel. 

Byers (A. M.) 

Crucible Steel. 

Inland Steel. 

.Jones & Laughlin. 

Kevstoiie Steel. 

Otis Steel. 

Sloss Sheffield. 

Superior Steel. 

Truscoii Steel. 

United States Pipe & Foundry. 

Warren Foundry & Pipe. 

United States Steel. 

Youiigstown Sheet & Tube. 

Castle (A. M.). 
Sugar producing and refining (8) : 

American Sugar. 

Central Aguirre Association. 

Cuban American Sugar. 

Fajardo Sugar. 

Great Western Sugar. 

Guantanamo Sugar. 

National Sugar Ref. 

South Porto Rico Sugar. 
Textiles and apparel (30) : 

Cannon Mills. 

Naumkeag Steam. 

Pacific Mills. 

Pepperell. 

Powdrell & Alexander. 

Durham Hosiery. 

Gotham Silk Hosiery. 

Kayser (J.) 

Phoenix. 

Van Raalte. 

Cluett Peabody. 

Decker (A.) & Cohn. 

Hart Schaffner. 

Kuppenheim (B.) 

Manhattan Shirt. 

Munsingwear. 

Phillips-Jones. 

Richman Bros. 



CONCENTRATION OF ECONOMIC POWER 



181 



Textile and apparel (30) — Continued. 
Reis (Robert). 
American Bemberg. 
Celanese Corporation. 
Industrial Rayon. 
Belding Heminway. 
Blumenthal (S.) 
Century Ribbon. 
United Piece Dye. 
American Woolen. 
Arlington Mills. 
Cleveland Worsted. 
Stroock (S.) 
Tobacco and tobacco products (16): 
American Tobacco. 
Liggett & Mvers. 
Lorillard (P.). 
Morris (Phillip). 
Reynolds (R. J.). 
Universal Leaf. 
American Snuff. 
American Sumatra. 
Bayuk Cigars. 
Congress Cigar. 
Consolidated Cigar. 
General Cigar. 
Helme (G. N.). 
Mac Andrews & Forbes. 
United States Tobacco. 
Webster Eisenlohr. 
All other companies (35): 
Coal (7) : 

Lsland Creek Coal. 

Lehigh Coal & Navigation. 

Pennsylvania Coal & Coke. 

Philadelphia & Reading Coal 
& Iron. 



All other companies (35) — Continued. 
Coal (7) — Continued. 

Pittsburgh Coal. 

Pittsburgh Terminal Coal. 

United Electric Coal. 
Retail trade (25) : 

Abraham & Straus. 

Arnold Constable. 

Best & Co. 

Bloomingdale. 

Fair (The). 

Gimbel Bros. 

Interstate Department. 

Kaufman Department. 

Kresge. 

May Department. 

Oppenheim Collins. 

Grant (W. T.) 

Kresge (S. S.). 

Kress (S. H.). 

Newberry (J. J.). 

Woohvorth (F. W.). 

American Stores. '' 

First National Stores. 

Jewel Tea. 

Kroger Grocery. 

National Tea. 

Butler Bros. 

Montgomery Ward, 

Sears, Roebuck, 

Childs Co. 
Theaters (3): 

Loew's, Inc. 

L^niver^l Pictures. 

Warner Bros. 



APPENDIX C 

DESCRIPTION OF ITEMS USED IN THE STANDARD STATIS- 
TICS SAMPLE OF 400 CORPORATIONS 

Source. — Ftohi the ofl&cial records of the corporation analyzed. 
Data are as of the close of the calendar year. Where a fiscal year 
does not precisely coincide with the calendar year, the data are re- 
ported under the calendar year containing the majority of months of 
the particular fiscal year. 

Net profit.— Represents the amount available for fixed charges after 
depreciation, etc. 

Fixed charges. — Consisting of bond interest, other interest and 
amortization, bond discount and expense, and subsidiary charges. 

Net income. — Available for dividends after depreciation and fixed 
charges. 

Preferred dividends. — Only payments made or declared during 
company's fiscal year. 

Available for common. — Represents amount available for common 
stock after deducting preferred dividend requirements for the year, 
whether fully paid or not. 

Common dividends". — Total cash payments during the fiscal year 
on the common stock. 

Surplus adjustments. — Net amount charged or credited to surplus 
through stock dividends, property adjustments, etc. 

Balance to surplus. — The net increase or decrease in profit and loss 
surplus through the year's operations. 

Total invested capital. — Includes funded debt, preferred and com- 
mon stock, capital reserves and surplus. 

Property account. — Shown after depreciation and other reserves. 

Investments.— Jjong term m vestments. 

Intangibles. — GoodMdll, patents, Ucenses, unamortized bond dis- 
count and like items. 

Cash and equivalent. — Includes marketable securities, call loans, 
and Government securities and similar items. 

Receivables, inventory, current assets, and current liabilities are 
the usual items. 

Fimded debt. — Long-term debt, including purchase-money mort- 
gages, subsidiary preferred stocks, etc. 

Preferred stock. — Includes all stock issues senior to the one analyzed. 

Common-stock surplus. — Book or stated value of common or capital 
stock and surplus. 

Capital reserves. — Consisting of special appropriations from surplus 
for contingencies. 
182 



APPENDIX D 
STUDY OF SMALL MANUFACTURING CORPORATIONS 

The general procedure followed in the study of small manufacturing 
corporations may be summarized thus: Income-tax retiu-ns of about 
1,300 small manufacturing corporations were pulled from, the files of 
the Bureau of Internal Revenue and sent to the Income Tax Study in 
Philadelphia, a Work Projects Administration project of the Division 
of Tax Research of the- Treasury Department.^ The income state- 
ments and balance sheets of these returns were transcribed at the 
Income Tax Study according to suggestions advanced by the planners 
of the study in the Department of Commerce.^ After the data from 
the original returns had been transcribed they were then retrans- 
cribed onto another so-called adjusted-data card which contained not 
only all the adjustments which it was intended to make of the original 
data, but also all of the ratios for which frequency counts were desired. 
Finally, the tables were compiled on the basis of the information on 
the adjusted-data cards. Such tables are of two general sorts: First, 
composite tables which are merely aggregates of the income statement 
and balance-sheet information on the adjusted-data cards; and 
second, frequency-count tables which are classifications of the various 
ratios according to size. Each of these phases, of the study will be 
explained in some detail in the pages which follow. 

SAMPLING REQUIREMENTS 

The requirements set up for inclusion in thesam'ple were seiveralfold. 
In the first place, it was decided to limit the corporations to those 
having assets under $250,000 in 1926. This is ah arbitrary require- 
ment intended to fulfill the condition that the corporations be small. 
In fact, it might be more appropriate H instead of "small," the corpo- 
rations were described as "very small." NevertJieless, it is still true 
that the bulk of American manufacturing corporations — 68,803 out of 
a total of 85,350 filing balance sheets, or 81 percent in 1936 — fall into 
the less than $250,000 asset category. Therefore, other limitations in 
the sample were required. The second major limitation was that the 
returns be restricted to five industries, as follows: Bajkeries, men's 
clothing, furniture, stone and clay products, and machine tools and 
accessories. Other requirements of the sample were that the firm be 
in active operation in 1926, and submit a balance sheet with its income 
statement on its 1926 returns. 

The diverse industrial fields embraced by, and the large number of, 
small manufacturing corporations precluded comprehending more than 
a few industrial categories within the modest confines of the proposed 
study. Therefore, industrially and geographically, the sample had to 

> This study was sponsored and directed by the Division of Tax Besearch of the Treasury Department 
and financed by funds transferred by the Commissioner of Work Projects to the Treasury Department 
under authorization of the President. 

' The project was known; at the Income Tax Study, as Special Proposal 14. 

183 



Jg4 CONCENTRATION OF ECONOMIC POWER 

be controlled so that a tolerably representative picture could be ob- 
tained from examination of 1,000 corporations over the 11 -year period 
and 300 additional corporations over the last 7 years. This accounts 
for limiting the sample to 5 industries. Two of these — machine-tool 
manufacturers and some part of the stone and clay products industry — 
represent producers' goods. Tv»"0 of them — furniture manufacturers 
and the rest of the stone and clay products industry — represent con- 
sumers' durable goods. The men's clothing industry produces what 
may be called consumers' semidurable goods, while the bakery indus- 
try produces consumers' perishable goods. In addition, the 5 in- 
dustries selected are characterized by small firms rather than large 
ones. Finally, the industrial groups were sufficiently easy to recognize 
to permit a tolerably consistent industrial break-down. The retiu'ns 
of the sample were drawn "from 22 collection districts ^ selected with 
an eye to industrial characteristics and regional diversity. The coun- 
try was arbitrarily divided into 5 regions and enough collection dis- 
tricts were included in each region to cover approximately 50 percent 
of the eligible returns filed. Within each collection district the sam- 
ple was drawn by given letters of the alphabet; that is, all the corpo- 
ration returns in letter "A" for each of the 22 collection districts were 
examined and eligible ones drawn, and similaily for other letters. 
When 200 * returns for a given industry had been drawn, no more 
returns for that industry were pulled. This established procedure was 
continued until 200 returns had been drawn for each industry. Once 
the sample for 1926 had been constructed, the returns for those iden- 
tical firms were drawn in succeeding years through 1936, or until a 
given firm failed. In addition to the original sample of 1,000 returns 
starting in 1920, a supplementary sample of 300 returns starting in 
1930 was pulled under the same requirements as indicated for the 
original sample of 1,000 returns in 1926. 

PULLING THE SAMPLE 

The first problem encountered in pulling the returns to be included 
in the sample was that of geographical 'distribution. The income-tax 
returns of the Bureau of Internal Revenue are filed by collection dis- 
tricts. In most cases there is but one collection district to a State, 
although large States such as New York and Pennsylvania may require 
as many as five. For selection purposes the country was divided into 
five areas — Northeast, East, South, Midwest, and Far West, No 
intention was in mind of making these areas correspond to census 
areas or any other well-known economic classifications. It was 
merely desired to spread the collection districts examined throughout 
the entire United States. The collection districts which were actually 
included in each area follow: 

Northeast: Massachusetts and Rhode Island.^ 

East: New York, second and third, and Pennsylvania, first. , 

Middle West: Ohio, first; Ohio tenth; Ohio, eleventh; Ohio, 

eighteenth; Illinois, first; Illinois, eighth; Missouri, first; and 

Missouri, §ixth. 

South: North Carolina, South Carolina, Georgia, Kentucky, 

Alabama, Texas, first, and Texas, second. 

Far West: California, first; Cahfornia, sixth; and Colorado. 

' A 23(^istrict was also examinpd to build up the sample for the machine-tool industry. See Infra. 

* In actuality, slightly more than this number were pulled, to allow for nonusable returns. 

• For machine tools only. 



CONCEiNTllATlOX OF Ec:ONOMIC POWER l[g5 

This total of 23 collection districts is less than half the number in 
the entire United States. In tiddition, only 22 of these collection 
districts were used for 4 of the industries covered. The twenty-third 
collection district, Khode Island, was employed only in order to build 
up the sample of machine-tool manufactm-ers. It was found virtually 
impossible to obtaiii the required number of machine-tool manu- 
facturers unless the Rhode Island collection district was sampled. 

It was stated above that the collection districts were selected with 
the intention not only of giving industrial representation, but also of 
including about one-half the total corporate returns filed in each area. 
TIh> States included in each area, for this purpose, follow: 

New England: Maine, New Hampshire, Vermon.t, Massa- 
chusetts, Rhode Island, and Connecticut. 

East: New York, New Jersey, Pennsylvania, Delaware, 
Maryland, and the District of Columbia, 

Middle West: Ohio, Indiana, Ihinois, Michigan, Wisconsin, 
Minnesota, Iowa, Missouri, North Dakota, South Dakota, 
Nebraska, and Kansas. 

South: Virginia, W\^st Virginia, North Carolina, South Caro- 
Ima, Georgia, Florida, Kentucky, Tennessee, Alabama, Missis- 
sippi, Arkansas, Louisiana, Oklahoma, and Texas. 

Far W^est: Montana, Idaho, Wyoming, Colorado, New Mexico, 
Arizona, Utah, Nevada, Washington, Oregon, and California. 

The letters of the alphabet comprehended by the sample and the 
ortler in which these letters were examined, were determined by using 
the names of persons connected with the project. The procedure was 
to examine the returns filed under, say, the letter "A" in each of the 
22 collection districts covered for all industries and the Rhode Island 
district for the machine-tool industry. In going through the returns 
filed under the letter "A," all manufacturing corporations were spotted. 
Of these manufacturing corporations, all those fulfilling the industrial 
and size requirements were segregated. Finally, from this last: group 
were pulled all those that had filed balance sheets with the income 
statements and were in active operation in 1926. The same procedure 
was followed for the 1930 supplementary sample. In general, the 
returns filed under a given letter were examined for all of the collection 
districts covered before the returns filed under another letter were 
examined.^ 

In order to collate the 200 desired bakeries, it was necessary to go 
through 10 letters m all 22 of the collection districts covered, another 
letter in 6 of the districts, 2 more letters in 3 of the districts and 2 more 
letters in 2 of the districts. In order to obtain the 200 desired men's 
clothing manufacturers, it was necessary to go through 10 letters in all 
22 districts, 1 additional letter in 7 of the districts, 4 additional letters 
in 5 of the districts and 6 additional letters in 3 of the districts. All 
200 of the furniture manufacturing corporations were procured by 
going through 10 letters in all 22 districts. To obtain the 200 stone 
and clay products manufacturers, it was necessary to go through 10 
letters in all 22 districts, 2 additional letters in 5 of the districts and 4 
additional letters in 1 of the districts. In order to obtai^ the 200 



« Exceptions to this procedure were necessarv to speed up the pulling of the sample. Such exceptions 
consisted in examining returns under additional letters in those collection districts most productive oi 
usable returns. 



186 



CONCENTRATION OF ECONOMIC POWER 



machine tool and accessory manufacturers, it was necessary to go 
through 10 letters in all 23 districts, tliis time including Rhode Island, 
an additional letter in 8 of the districts, 4 additional letters in 6 of the 
districts, 2 additional letters in 5 of the districts, and 9 additional 
letters in 4 of the districts. In other words, in order to obtain the 
desired number of machine-tool companies, it was necessary to go 
througli every letter of the alphabet for at least 4 of the districts, prac- 
tically ever}^ letter for 5 of the districts, a slightly fewer number of 
letters for 6 of them, and 10 of the letters for the rest. 

The distributioii of the returns in the original sample of 1,000 firms 
in 1926 and the supplementary sample of 300 firms m 1930, a.s pulled, 
is given in the accompanying tablesD -1 and D-2. Table D-1 gives 
the industiy totals by collection districts and area for the original 
sample of 1926, wliile tabic D-2 gives the industry totals by collection 
districts and area for the supplementary^ sample of 1930. 

Table 'D-l.—IJidustry, colUction district, aiid area hreak-doum of small manufactur- 
ing corporations original sample of 1926 ' 



Collection district and area 


Baking 


Men's 
clothing 


Furniture 


Stone and 
clay 


Machhie 
tools 


Total 


Massachusetts - . 


35 



19 


3.3 



22 



27 
16 


136 


Rhode Island . 


15 






North 


35 


19 


33 


22 


42 


151 


New York, second and third . _ . .. 


37 
21 


128 
5 


34 
18 


10 
22 


21 
9 


230 




75 






East.. 


5S 


133 


62 


.32 


30 


305 


Ohio: 

First 


10 

3 

1" 

26 
3 

6 
1 


8 


9 

26 
2 

6 



10 

7 
5 
8 

31 


7 
2 


6 

17 
12 
21 

22 

8 

6 
4 


27 
8 
2 

31 

54 


7 

1 


61 


Tenth-. 


39 


Eleventh.. 

Eighteenth 


22 

86 


Illinois: 

First... 


im 


Eig-hth 


13 


Missouri: 

First 


^ 


Sixth. ^ ■ .. 


8 






Midwest 


73 


51 


70 


96 


130 


420 


North Carolina .... 


2 

5 
4 
6 
2 

2 
3 




1 
1 
2 






23 


n 
9 

1 


1 


6 

5 
6 
6 
7 

4 





1 
1 

1 





31 


South Carolina 

Geori;ia.__ _.. ...i.. 


n 

17 


Kentucky 


24 


Alahama.- 


11 


Texas: 

First 


9 


Se(»nd . ... 


8 






South... 


24 


4 


39 


41 


3 


111 


California; 

First 


7 
5 
6 



2 

1 


7 
9 



3 

10 
6 


2 
2 



19 


Sixth 


28 


Colorado 


13 






West 


18 


3 


16 


19 


4 


60 






Total .- - 


208 


210 


210 


210 


209 


1,047 







' TJnrevisL'd. The figures in this table show the composition of the sample at the conclusion of pulling it. 
Some of these firms wore thrown out in the transcription. For the revised figures showing the number of 
corporations in each celKwhose returns were actually transcribed and used in the tabulations, see table on 
pp. 9 and 10 in the text of this report. 



OONCENTRATION OP ECONOMIC POWER 



187 



Table D-2. — Industry, collection district, and area break- down of small manufactur- 
ing corporations supplementary sample of 1930 ' 



Collection district and area 


Baking 


Men's 
clothing 


Furniture 


Stone and 
clay 


Machine 
tools 


Total 


Massachusetts . 


' 4 


4 


3 



15 



4 



11 
1 


37 
\ 


Rhode Island '... 






North 


3 


15 


4 


12 


38 






New York, second and third . 


4 
4 


80 
1 


12 
6 


1 
1 


3 
2 


100 


Pennsylvania, first 


14 






East 


8 


81 


18 


2 


5 


114 






Ohio: 

First 

•Tenth 


4 

3 
1 

1 
3 

1 
5 






1 

3 


1 



2 

2 

1 

13 


2 
2 


4 

3 
3 

7 
3 

1 



5 
1 

1 
6 

6 






15 
1 


Eleventh . 


9 


Eighteenth 


12 


Illinois: 

First... 


30 


Eighth- 


6 


Missouri: 

First .. 


5 


Sixth 


7 






Midwest 


18 


5 


22 


21 


19 


88 






North Carolina, . 


2 

2 

1 
2 

4 
2 






1 





9 


1 
1 



1 


4 
1 
1 
2 
1 


2 


1 


1 






16 


South Carolina 


1 


Georgia _ 


4 


Kentucky 


5 


Alabama 


4 


Texas: 

First.. 


-4 


Second 


5 






South . 


13 


1 


12 


11 


2 


39 






California: 

First... . 


1 
4 
2 







2 

1 



3 
5 
4 


1 

1 



7 


Sixth- 

Colorado 


11 
6 


West _■-. 


7 





3 


12 


2 


24 


Total 


50 


90 


70 


50 


40 


300 







1 Unrevised. The figures in this table show the composition of the sample at the conclusion of pulling it. 
Some of these firms were thrown out in the transcription. For the revised figures showing the number of 
corporations in each cell whose returns were actually transcribed and used in the tabulations, see table on 
p. 10 in the text of this report. 

The definition of the industries covered in the study presented some 
difficulty. Perhaps the most diffii^ult to pin down precisely was the 
machine-tool group. According to the National Machine Tool Buildr 
ers Association, "A machine tool shall be defined as a power-driven 
complete metal-working machine, not portable by hand, having one 
or more tool and work-holding devices used for progressively removing 
metal in the form of chips." In actual practice, however, it was not 
possible to limit the sample of 200 manufacturing companies in the 
machine-tool group to that precise definition. In fact, it was neces- 
sary to include in the machine tool and accessory group the following 
various types, as indicated by the company on the face of the income- 
tax returns: 



1. Mold tools, dies, and stamping. 

2. Machine knives. 

3. Tooling jigs. 

4. Taps. 

5. Thread-cutting tools. 

6. Gauges. 



J §3 CONCENTRATION OF ECONOMIC POWER 

7. Special machinery. 

8. Hobbing cutters. 

9. Punches. 

10. Steel milling and cutting machines and tools. 

In the case of the furniture industry it was necessary to limit the 
sample rather closely. In this group it was finally decided to include 
the following lines: 

1. Upholstered parlor furniture. 

2. Reed furniture. 

3. Art furniture. 

4. Cabinets. 

5. Chairs. 

6. Upholstering. 

7. Beds. 

8. Living-room tables. 

9. Suites for breakfast rooms. 
10. Cribs and bassinets. 

Under the stone and clay products group the following manufac- 
turers are included: 

1. Concrete stone. 

2. Brick. 

3. Cement blocks. 

4. Building tile. 

5. Concrete pipe. 

6. Clay products. 

7. Lime and limestone products. 

8. Cement stucco. 

9. Art stone. 

10. Drain and hollow tile. 

It was necessary to include these various industrial groups because 
no precise designation consistent from company to company is found 
on the income-tax return itself. The reporter is asked to indicate 
whether his business falls into the broad category of manufacturing, 
finance, and so on, but within that category he is permitted to name 
his own industry. In the listings given above are included all of the 
names given on the returns in the sample. Obviously, it would not 
be feasible to draw up a precise technical definition which would in- 
clude all of the items listed under each industrial group above, and 
exclude all the items not there listed. In addition, since it was nec- 
essary to follow the designation given by the pei'son who filed the 
return, it is possible that these industrial groups as given are far 
from accurate or complete. However, considering the fact that the 
sample was limited to the income-tax returns filed in the Bureau of 
Internal Revenue, there seemed no feasible method for making the 
industrial classification any more refined. 

To assist in maintaining the representativeness of the sample, it was 
decided to pull a supplementary sample of 300 small corporations in 
1930 and succeeding years in which they were operating. By 1930 
the original sample of 1,047 returns in 1926 had decreased to 720 
returns in 1930. Bakeries fell from 208 to 150; men's clothing from 
210 to 111; furniture from 210 to 133; stone-clay products from 210 



CONCENTRATIOX OF ECONOMIC POWER Jgg 

to 153; and machine-tool manufacturers from 209 to 173. This 
means that over the 4-year period 58 bakeries dropped out of the 
sample, 99 men's clothing, 77 furniture, 57 stone-clay, and 36 ma- 
chine tools. In order to deal with round numbers it was decided to 
include 300 firms in the supplement of 1930, distributed industrially 
in tliis manner: 

Bakeries 50 

Men's clothing 90 

Furniture 70 

Stone-clay 50 

Machine tools 40 

Total 300 

The method used in selecting this sample was the same as that used 
for the original 1 ,000 corporations in 1926. Two letter^ of the alphabet 
were examined in order to obtain the 50 bakeries; 17 letters of 
the alphabet for the 90 mens' clothing; three letters for the 70 fur- 
niture; one letter for the 50 stone-clay; and three letters for the 40 
machine tools. The corporations were selected from the same dis- 
tricts used in the original sample. All of the districts for each industry 
were examined for the various letters with the exception of mens' 
clothing. For this industry, three letters were examined for all 22 
districts and 14 letters for only the New York City district. 
Since the bulk of the clothing manufacturers are centered in New 
York, the geographical distribution of the sample is not particularly 
disturbed by this one deviation. 

Although the method of filing fiscal-year returns was changed during 
the period 1926-36 by the Bureau of Internal Revenue, the selection 
of tlie returns for inclusion in the sample of small manufacturing cor- 
porations was maintained consistently. Fiscal-year returns were 
pulled for that year nearest which they fell. Therefore, the sample 
includes not only returns compiled for the year ending December 31, 
but also those filed for the preceding and succeeding 6 months. 

A knotty problem encountered in pulling the returns was that of 
locating returns which had been misfiled or were filed under a different 
name in succeeding years. This is a problem which would arise only 
in the case of an identical sample over a period of years. Every 
effort was made to find all of the succeeding-year returns for a given 
corporation. This was necessary because it was planned to assume 
later in the study that all those companies for which succeeding-year 
returns could not be found ipso facto failed or discontinued operations 
for one reason or another. After the original sample for 1926 and 
the supplementary sample for 1930 had been drawn, lists were com- 
piled of the corporations included, and an intensive search was made 
in the returns filed under each of the succeeding years up to 1936 for 
these corporations. This task was done by employees of the Tem- 
porary National Economic Committee and at its conclusion a sizable 
list of returns was still missing. Those which were found were 
examined closely to find out if there was any evidence that the firms 
probably did not file a return jn the succeeding year for which no 
returns were found, because of financial difficulties or some other 
reason. This still left several hundred firms for which succeeding- 
year returns had r^ot been found and yet for which there was no 
definite indication of failure. In addition, there were abo,ut a himdred 



JQQ CONCENTRATION OF ECONOMIC POWER 

firms for which intervening- years were missing; that is to say, returns 
for the years 1926 through 1929 and for the years 1931 through 1934 
could be found, but no returns could be found for 1930. Such firms 
with intervening years missing could not be grouped in the failure 
category; moreover, they could not be included in the group filing 
returns throughout the entire period unless the returns for the inter- 
vening year could be found. Therefore, all such corporations, that is, 
those for which intervening years were missing among the returns and 
those for which succeeding-year returns were missing for no assignable 
reason, were examined more closely. Letters were sent by the Bureau 
of Internal Revenue to each of the 23 collection districts covered by 
the study, giving the name, address and other pertinent information 
concerning the corporations for which intervening-year or succeeding- 
year returns were not available in that particular collection district. 
These returns were then checked with the cards on file with the 
district collector of revenue and a report sent back to the Bureau of 
Internal Revenue. This report contained the serial number of the 
return if one had been filed by the company. If succeeding-year 
returns had not been filed by the company it was assumed that the 
corporation had not operated. In the case of the intervening-year 
returns which had not been filed nothing could be done. The cor- 
poration may have filed in another collection district or it may not 
have filed at all. Fortunately, the number in this last category of 
intervening years missing without any record in the collector's office 
was negligible. As a final result of rather intensive searching, 29 
companies finally remained in the group of corporations for which 
returns could not be located in the Bureau of Internal Revenue files. 
In some cases there were theoretical possibilities of the corporation 
filing returns for a period of 7 or 8 succeeding years. In most cases 
it was probable only one or two returns were filed. This introduces 
an inadequacy in the sample for which there seems to be no method of 
correction. In tables presented in appendix F, such corporations 
were included in neither the identical sample nor in the firms-that- 
failed sample. 

If a corporation stopped filing, returns in a given year it was assumed 
that the corporation went out of existence in that year. There is no 
positive check, of course, for this assumption, but its reasonableness 
can be argued. 

In conclusion it can be said that the pulling of these returns for the 
study of small manufacturing corporations was a herculean task. 
Only the fact that it was such a task prevented a considerable increase 
in the size of the sample. It would obviously have been desirable to 
have covered, say, 5,000 returns for the 11-year period, instead of a 
mere 1 ,000. The representativeness of the sample would probably have 
been increased several fold. However, the difficulties encountered 
in pulling the returns for 1,000 corporations was sufficient to thwart 
any desire there m.ay h^ve been to quadruple or quintuple the size of 
the sample. As it was, three or four persons were employed for 
several months in the files of the Bureau of Internal Revenue pulling 
the returns. 

COVERAGE OF THE SAMPLE 

It is impossible to ascertain precisely the coverage of the small 
manufacturing corporations sample, within the size and industrial 
limits set forth. This is due to the fact that we do not know exactly 



CONCENTRATION OF ECONOMIC POWER JQl 

how many baking, men's clothing, stone and clay products, furniture, 
and machine-tool and accessory corporations having assets less than 
$250,000 in 1926, there are m the United States. The best that can 
be done in analyzing the approxunate extent of the sam.ple is to point 
out at least how large the sam.ple, in percentage terms, must be. 

There are three possible m.eans for analyzing the 1926 coverage of 
the original sample of 1,000 returns. The first of these is on the 
basis of inform.ation available in Statistics of Incom.e for that year, 
the second in the Census of Manufactures for 1927, and the third 
from an analysis of the num.ber of letters of the alphabet through 
which it was necessary to go in order to obtain the required number of 
firm.s for each industry. Each of these m.ethods will be followed in 
turn. 

According to the 1926 Statistics of Income, corporations submitting 
incom.e data with their returns, for each of the five industrial sub- 
groups corresponding to those covered in this study, numbered: 

Bakery products — confectionery _- 3, 124 

Clothing — custom-made hats, caps, underwear, shirts, etc 6, 326 

Furniture — house and office, etc 4, 032 

Stone, clay, glass 4, 606 

Factory machinery, textile, paper, printing presses, machine tools, etc I, 848 

Total for 5 subgroups 19, 936 

If we assume that the asset-size distribution of the food, apparel, 
forest, stone, and metals, groups in the 1936 Statistics of Income is 
not only broadly representative of that in the 1926 issue but also 
applies roughly to the five industrial subgroups, the percentages of 
corporations with assets less than $250,000 follow: 

Percent 

Food 82 

Apparel ... 92 

Forest 77 

Stone - 79 

Metals 77 

Average for all 5 81 

Applying these percentages to the number of returns in the respective 
industrial subgroups in 1926, and dividing the resulting product into 
200, the number of firms per industry in the 1926 sample, we have the 
following approximate percentages of coverage: 

Percent 

Bakeries 8 

Men's clothing __- . 3 

Furniture ^ -.1 6 

Stone-clay — 5 

Machine tools 14 

Total^ample 6 

These represent bottom limits to the coverage of the sample because 
(1) they include only corporations with income data, there being, 
of course, fewer still reporting balance sheets; (2) the industrial 
categories as defined in Statistics of Income are somewhat broader 
than those defined for the purpose of the present study ^ and (3) there 
may have been a larger proportion of small manufacturing corpor- 
ations in 1926 than in 1936. 



102 CONCPiNTRATION OF ECONOMIC POWER 

Another approximation can be obtained by examining the data on 
the number of estabhshments in the Census of Manufactures for 1927. 
In that year there were 18,129 establishments making bread and other 
bakery products. This would give the sample a minimum coverage 
of only 1.1 percent. However, when it is realized that all these 
bakeries are not incorporated— in fact, the bulk of them are not 
incorporated — the coverage of the sample, limited as it is to corpor- 
ations, would be increased considerably above the 1.1 percent level. 
There were 3,562 establishments making men's and boys' clothing, not 
including work clothing. This would give the sample of 200 firms a 
5.6-percent coverage. Under furniture, the Census of Manufactures 
gives 3,222 establishments. This includes not only those making 
wood and household furniture but also other furniture, namely office 
equipment and the like. The relative proportion of the wood house- 
hold furniture to the total'is about 65 percent, based on the value of 
products. Sixty -five percent of 3,222 gives 2,090, which means that 
the present sample w^ould have a coverage of about 9.9 percent in the 
furniture field. In 1927 there were 2,162 establisliments in the clay- 
products industry which would give the 200 firms a coverage of 9.3 
percent. In 1927 there were 355 machine-tool manufacturers, using 
a somewhat narrower defuiition than that followed in the ''present 
study. This would give 56.4 percent which is an overstated coverage* 
for the sample, because the Census' industrial definition is narrower 
than ours. Taking all firms together, there are 27,298 establishments 
in the five industries covered by the study of small manufacturing 
corporations. The sample of 1,000 represents 3.8 percent of all those 
establishments taken together." These estimates, based on the 
Census, of the coverage of the sample are also bottom limits, for 
several reasons. Corporations may have more than one establish- 
ment. All establishments reported in the Census of Manufactures 
are not incorporated. The Census of Manufactures statistics include 
all establishments, both below and above $250,000 in assets, and no 
break-down by size is possible. Finally, the industrial classifications 
in the Census of Manufactures are slightly broader in certain instances 
than those followed in the present study. 

The fact that the number of ni.anufacturing corporations included 
within each area covered by the study approximated 50 percent of 
the total in each area, and the fact that the bulk of the letters of the 
alphabet were examined in order to obtain the required number of 
firms in each sample, lead to the conclusion that the actual coverage 
of the returns in the sample of small manufacturing corporations, 
assuming the requirements laid down by the conditions of sampling, 
must be not far from the 50-percent level. It is probably smallest in 
the furniture group and largest in the machine tools. It is probably 
larger in the men's clothing than in bakeries, and clay and stone 
products. Precise percentages cannot even be estimated. 

OPERATIONS AT THE INCOME TAX STUDY 

As soon as the original sample of 1,000 returns in 1926 had been 
drawn from the Bureau of Internal Revenue files, they were shipped 
to the Income Tax Study in Philadelphia. By means of these 1926 
returi\s, a test transcription was conducted of the desired balance 
sheet and income statement items in order to ascertain some of the 



CONCENTRATION OF ECONOMIC POWER 293 

probh'BTs which would arise in training a small crew of clerks to tran- 
scribe these returns. By the time the test transcription had been 
completed, and the results appi-aiscd. the returns for the sample cor- 
porations for succeeding years had been pulled from the Bureau of 
Internal Revenue files and shipped to Philadelphia. 

The transcription procedure finally adopted was to copy the desired 
information from the returns onto so-called original data cards and sup- 
plemontar}^ data cards. The returns had been audited by the B. I. R,./ 
but they were not edited before transcription because they were 
original returns, not duplicates. All adjustments made in the figures 
copied from, the returns were indicated b}^ footnotes on the original 
data cards. The 54 itenis on the original data card and tlie 1 7 items 
on the supplementary data card were transcribed according ro detailed 
instructions. After the data had been transcribed to the original data 
and supplementary data cards, of which there was one for each cor- 
poration in the study, the material was verified against original source 
by a separate crew. The checks used were the more obvious ones of 
balancing assets against liabilities, gross capital assets minus depre- 
ciation reserve against net capital assets, and the like. When the 
original data and supplementary data cards had been filled out to the 
supervising staff's satisfaction, the data were transferred to tlie ad- 
justed data card, of which there was also one for each corporation in 
the sample. The purpose of the adjusted data card was to transform 
the data on the original data card into shape for final tabulation. 
That is to say, it was necessary to pass from the balance sheet and 
income statement items as given on the returns and as transcribed 
onto the original data card, to the balance sheet and income statement 
items desired in the final tables. In addition, the adjusted data card 
contained all of the ratios between balance sheet and income statement 
items which were to be used in the frequency counts and cross classi- 
fications comprehended in the final tables. After the data had been 
transferred to the adjusted data card, the adjusted data card was 
subjected to a series of checks which were even more detailed than 
those applied to the original data and supplementary data cards. 

The final tables were divided into two broad groups. The first are 
composite tables, aggregates of the balance sheet and income state- 
ment items which appear on the adjusted data card. The other broad 
group of tables comprises the so-called frequency tables and cross- 
classifications. These tables concern the number of corporations, for 
example, falling in given profit classes, given current ratio classes, and 
the like. These frequency tables utilize the ratios which appear on 
the adjusted data card. 

At one time in the study it was planned to maintain both asset size 
and area break-downs for all tables. However, a preliminary tabu- 
lation of four of the frequency tables on, first, the basis of asset 
size, and second, the basis of area, revealed that in the sample as 
composed, there was not a significant difference revealed by the asset 
size and area break-downs. This does not mean that asset size and 
area have no effect on the financial structure of corporations. 'iHow- 
ever, it does imply that an asset size break-down of a small sftmple 
of corporations, all of which are small in asset size, may not bci i 
significant enough to warrant the extra labor required in obtaining 

' Unlike this study, the Statistics of Income tabulations are compiled from unaudited returns. 



jg4: CONCENTRATION OF ECONOMIC POWER 

such a break-down; and, in the case of the area break-down, it imphes 
that any effect area may have on the financial statements of these 
corporations has been dissipated by the smallness of the sample on 
the one hand, and by the fact that certain of the industries represented 
in the sample of the study of small manufacturing corporations were 
largely peculiar to particular areas. 

Aside from the use of adding and calculating machines, all of the 
work on the Study of Small Manufacturing Corporations was manual, 
or nonmachine. That is to say, although the study was perhaps large 
enough to lend itself to punch-card and tabulating-machine operations, 
it was nevertheless limited to purely manual operations. The fre- 
quency counts were all derived by means of hand tally, and the aggre- 
gate tables were done on ordinary adding machines. 

At every stage of the operations at the Income Tax Study rigid 
controls were in effect. A careful check was maintained on the returns 
of each corporation as they passed through the stages of transcription 
to original data cards, transcription to adjusted data cards, and utiliz- 
ation in final tables. Control sheets were used tliroughout. In addi- 
tion, at the completion of each stage in the process careful checks were 
applied to see that no mechanical errors had crept in. The final series 
of checks was applied to the final tables, that is, to both the composites 
and the frequency counts. 

FIRMS USED IN TABLES 

It is obvious from the division of the composite tables into those 
which concern the identical sample — that is, the sample of firms 
which remained in existence throughout the period covered — and those 
which concern the firms that failed, it was necessary to divide all of the 
corporations into these broad categories. In. addition to these broad 
categories, there was a third, consisting of those corporations for which 
returns for intervening or succeeding years were missing.^ 

The category of so-called failure firms raised one of the most 
difficult problems faced in the study. The mere fact that a firm 
happened to be in the faOure category in this study does not mean that 
it actually went into bankruptcy or some form of legal receivership. 
The companies in the "firms that failed" sample consist of two sorts. 
The first are those which give a definite indication on the return for 
the last year available that the corporation was in receivership or in 
the hands of trustees or in liquidation or was being dissolved, or some 
similar statement. The other broad category of companies in the 
"firms that failed" sample comprises firms which stopped filing 
returns ^ with the Bureau of Internal Revenue in a given year, say in 
1932, and which generally gave indication on the last several returns 
filed that they were in financial difficulties. Although no statement 
is made to the effect that they actually went into receivership or 
dissolution, there is a presumption that they probably did, and that 
this explains the failure of the corporation to file returns with the 
Bureau of Internal Revenue for succeeding years. All firms which do 
not fall into the failure category because either explicitly or implicitly 

* By "intervening year missing" is meant the inability to find the return for a corporation for some such 
year as, say 1930, there being returns for the years 1929 and 1931 already in the sample. By "succeeding year 
missing'Ms meant failure to find a return for a given corporation for all the years after, say 1931, there being 
no indica'tion on the 1931 return for the corporation that it failed or went out of business in that year. 

» .\s attested by the collectors. 



CONCENTRATION OF ECONOMIC POWER J 95 

they went out of business and which did not fall into the identical 
category, autoniatically fall into a third category of incomplete sets 
without indication of failure. ^° The returns in this third category 
are not used in the tables as actually completed in tliis study. It had 
originally been planned to use them along with the returns falhng 
into the identical and failure category in tables which were to be 
based on the successive-year identical grouping. Due to limitations 
of time it was not possible to do these so-called successive-year 
identicals, and hence, returns which were otherwise in the identical 
sample, had they not had intervening years missing, and returns 
which were otherwise in the identical sample had they not had suc- 
ceeding years missing, were not filially included in any of the tables 
in the Studj of Small Manufacturing Corporations except the four 
above-mentioned test tables which were designed to examine the 
significance of the asset size and geographical break-downs. 

DEFINITIONS OF ITEMS 

It is not feasible to give here the detailed definitions of each income 
and balance sheet item used in the Study of Small Manufacturing 
Corporations. In general, the same definitions were observed here 
that are followed in the Statistics of Income tabulations.*^ A few 
items, however, warrant a word of Explanation. Economic income is 
the most important of these. In proposal 14 tables this item approxi- 
mates book income as shown on the tax returns. It is equivalent to 
statutory income minuS unallowable deductions and plus nontaxable 
income. In addition, it is net of the Federal and State income tax. 
Both economic and statutory net income in these tables have been 
adjusted for the deduction of prior year losses, permitted in certain 
years under study. The item dividends paid, in the composite tables, 
includes only cash dividend disbursements reported on the return, 
stock dividends being shown in footnotes. In the frequency tables 
using the dividends paid item, it includes both cash and stock divi- 
dends. ^^ Tangible net worth is book net worth minus intangibles and 
deferred charges. Total investments in. enterprise equals net woijth , 
plus funded debt; total debt equals current liabilities plus funded 
debt; and total capital equals total debt plus net worth. Investments 
include marketable securities, and other current liabilities comprise 
expenses. Working capital is the difference between current assets 
and current liabilities. 

, The items used in these tabulations have been reported for income- 
tax purposes, and hence are subject to important biases. The tend- 
ency to minimize profits is well known. There is also a tendency 
toward incomplete reporting, however, where the tax liability is not 
affected thereby. This type of bias is more common with items of 
deduction than with balance sheet accounts, and with no-income than 
with income corporations. It is found particularly in such deductions 
as taxes, interest, and rent, but might affect any item. Thei'efore, 
these tables, and especially the deduction items, should be used 
circumspectly. 

"> Also included in this third category aro the few firms afEected by mergers and acquisitions. 

" The latter, however, are based on unaudited returns while the small-manufacturers' tables are com- 
piled from audited returns. 

'* This is an unfortunate discrepancy which passed undetected until too late for revision, pappily, stock 
dividends by these companies were generally small and infrequent. 

259845—40 — No. 1'5 14 



jgg CONCENTRATION OF ECONOMIC POWER 

13: Enter the sum of the depreciation and depletion charges for the period as 
both a debit and a credit. The debit will be closed out to line 3 as an adjustment 
of the change in the net property account, while the credit will be carried over 
directly to column 6. 

14: This item, from S. E. C. Table V a, can be checked by examining lines 2 
and 3 of S. E. C. Table VII. Eliminate capital gains and losses shown on P. & L. 
account. Credit a profit and debit a loss. 

17-26: The entries under "other additions," in S. E. C. Table VII, are credits; 
those under "other deductions" are debits. Enter on these lines only the net 
amount of these adjustments, rather than the total of the debits and credits. 

17: The net debit or credit of "recoveries — bad debts, etc.," and "extraordinary 
bad-debt losses." 

18: Debit any "write-down of inventories." 

19: The net debit or credit of "write-up of security investments," "profit on 
disposal of securities," "write-down of security investments," and "loss on disposal 
ofjsecurities." 

20: The net debit or credit of "write-up of land," "write-up of plant accounts," 
"profit on disposal of capital assets," "write-down of land," "write-down of plant 
accounts," and "loss on disposal of capital asset^." 

21: The net debit or credit of "write-up of intangibles," "write-down of intan- 
gibles," "unamortized debt discount and expense," "discount on capital stock." 
If the revaluation of intangibles seem large in comparison with the figure for total 
intangibles, check the company figures to see if some part of the adjustment should 
be made to the buildings-and-equipment account. 

22: Credit any "profit on redemption or reacquisition of debt." 

23: The net debit or credit of "profit on retirement or reacquisition of stock," 
"reduction of par or stated value of stock," and all stock dividends. 

24: Debit the sum of cash dividends on both preferred and common stock. 

26: This item merely provides a mathematical check, and is the net debit or 
credit of "reserve adjustments" (under "other additions"), "miscellaneous cred- 
its," "loss on retirement or reacquisition of securities," "reserve adjustments" 
(under "other deductions"), "miscellaneous debits," any dividends paid in other 
than cash or stock; and the net debit or credit of capital gain or loss. If the 
residual amounts to more than 10 percent of the total source or disposal, spot the 
companies with the largest unaccounted-for surplus debits and credits, look up 
their reports in Moody's Industrials, and ascertain to which accounts these sur- 
plus entries refer. Make enough of these adjustments to bring the residual down 
to 10 percent or less. 

28: Enter here the period change in the difi"erence between current assets and 
current liabilities. This is not only the net entry of lines 1 and 7, but also the 
net entry of lines 29 through 38. 

29-38: Enter on these lines the changes in each of the working-capital items 
over the period covered. 

B. Instruction for Entering the Period's Adjustments, Both Debits and 

Credits (Columns 3 and 4) (Form A) 

These columns are employed to transfer the adjustment items (mainly for non- 
cash debits and credits) to the appropriate balance sheet accounts. The entries 
in lines 13, 17-24 will be closed out by regular accounting procedures to the items 
in the preceding lines, as indicated by the letters in the cross-reference column. 
For exam])le, assume a write-down of land: The debit in line 20 of column 1 would 
be transferred to the land, buildings, and equipment account by entering the 
amount as a credit in line 20 of column 2 and again as a debit in line 3 of column 3. 
Attention is called to the fact that both the depreciation charge (line 13) and land 
and plant revaluations (line 20) are closed out to the land, buildings and equip- 
ment item (line 13), and that the revaluations both of receivables (line 17) and 
of inventories (line 18) are carried up to the current assets item (line 1). 

C. Instructions for Entering the Source a*nd Disposal Items (Columns 

5 AND 6) (Form A) 

These columns nre derived by consolidating the period's adjustments with the 

period's excess of debits and credits. Note that even though the depreciation 

and depletion charge (line 13) was carried as a debit adjustment to the land^ 

buildings and equipment item, it is also entered as a credit item (source of funds) 

- in column 6 of lino 13. 



APPENDIX F 

STATISTICAL TABLES FOR REFERENCE USE— SAMPLE OF 
SMALL MANUFACTURING CORPORATIONS 

These tables are basic to the material on small manufacturing 
corporations discussed in the text. They were compiled as special 
tabulations (proposals 7 and 14) ^ at the Philadelphia Incorrie Tax 
Study in accordance with. procedures outlined in appendix D and 
the data are subject to the limitations there discussed. 

Because Federal income-tax returns, request balance-sheet data for 
the beginning as well as the end of the year, it has been possible in 
many of these tables to include the year 1925. The identical samples, 
however, are rarely complete for that year because some firms did 
not present the beginning-of-year balance sheet. Hence, differences 
between the 1925 and 1926 figures should be used guardedly. Finally, 
the tables published here incorporate a few minor revisions not avail- 
able when the analysis in the text of this report was made. 

The tables are not numbered consecutively. Omissions represent 
data compiled but not published here. These data are of less im- 
portance but will be maintained in a Source Book by the United 
States Treasury Department in Washington, D. C. This Source 
Book is available for research purposes to qualified students repre- 
senting accredited organizations and to administrative officials of 
State and other Governmental units. In the appended list the 
headings of these omitted tables are given. It may be added that all 
the composite tables in these original compilations give the break- 
down between income and no-income companies while the published 
composites show only the totals, and that certain data shown only 
for selected years in the published tables are given annually in the 
original compilations. 

Table 2A: Year-to-year changes in balance-sheet items for an identical sample 
of small baking corporations classified into income and no-income companiesj 
showing the aggregate amounts over the period, 1926-36. 

Table 11 A; Frequency distribution of companies based upon the identity or 
lack of identity of State of location and State of incorporation by asset size for a 
sample of small baking corporations, 1930-36. 

Table 12A: Frequency distribution of companies and percentages of total by 
the ratio of funded debt to capital stock, cross-classified by asset size and by 
failure or survivorship, for a sample of small baking corporations, 1926-36. 

Table 13A: Frequency distribution of companies and percentages of total by 
the ratio of funded debt to capital stock, cross-classified by geographical location 
and by failure or survivorship, for a sample of small baking corporations, 1926-36. 

Table 14A: Frequency distribution of companies and percentages of total by 
the ratio of capital stock to surplus, cross-classified by asset size and by failure 
or survivorship, for a sample of small baking corporations, 1926-36. 

Table 15A: Frequency distribution of companies and percentages of total by 
the ratio of capital stock to surplus, cross-classified by geographical location and 
by failure or survivorship, for a sample of small baking corporations, 1926-36. 

• Proposal 7 was merclv an extension of proposal 14, in which the inventory item was subjected to further 
tabulation. Proposal 7 tables have been joined to those for proposal 14, the only distinction between the 
two proposals being one of administration at the Income Tax Study. 

199 



J98 CONCENTRATION OF ECONOMIC POWER 

13: Enter the sum of the depreciation and depletion charges for the period as 
both a debit and a credit. The debit will be closed out to line 3 as an adjustment 
of the change in the net property account, while the credit will be carried over 
directly to column 6. 

14: This item, from S. E. C. Table V a, can be checked by examining lines 2 
and 3 of S. E. C. Table VII. Eliminate capital gains and losses shown on P. & L. 
account. Credit a profit and debit a loss. 

17-26: The entries under "other additions," in S. E. C. Table VII, are credits; 
those under "other deductions" are debits. Enter on these lines only the net 
amount of these adjustments, rather than the total of the debits and credits. 

17: The net debit or credit of "recoveries — ^bad debts, etc.," and "extraordinary 
bad-debt losses." 

18: Debit any "write-down of inventories." 

19: The net debit or credit of "write-up of security investments," "profit on 
disposal of securities," "write-down of security investments," and "loss on disposal 
of;;securities." 

20: The net debit or credit of "write-up of land," "write-up of plant accounts," 
"profit on disposal of capital assets," "write-down of land," "write-down of plant 
accounts," and "loss on disposal of capital asset^." 

21: The net debit or credit of "write-up of intangibles," "write-down of intan- 
gibles," "unamortized debt discount and expense," "discount on capital stock." 
If the revaluation of intangibles seem large in comparison with the figure for total 
intangibles, check the company figures to see if some part of the adjustment should 
be made to the buildings-and-equipment account. 

22: Credit any "profit on redemption or reacquisition of debt." 

23: The net debit or credit of "profit on retirement or reacquisition of stock," 
"reduction of par or stated value of stock," and all stock dividends. 

24: Debit the sum of cash dividends on both preferred and common stock. 

26: This item merely provides a mathematical check, and is the net debit or 
credit of "reserve adjustments" (under "other additions"), "miscellaneous cred- 
its," "loss on retirement or reacquisition of securities," "reserve adjustments" 
(under "other deductions"), "miscellaneous debits," any dividends paid in other 
than cash or stock; and the net debit or credit of capital gain or loss. If the 
residual amounts to more than 10 percent of the total source or disposal, spot the 
companies with the largest unaccounted-for surplus debits and credits, look up 
their reports in Moody's Indr/strials, and ascertain to which accounts these sur- 
plus entries refer. Make enough of these adjustments to bring the residual down 
to 10 percent or less. 

28: Enter here the period change in the difference between current assets and 
current liabilities. This is not only the net entry of lines 1 and 7, but also the 
net entry of lines 29 through 38. 

29-38: Enter on these lines the changes in each of the working-capital items 
over the period covered. 

B. Instruction for Entering the Period's Adjustments, Both Debits .\nd 

Credits (Columns 3 and 4) (Form A) 

These columns are employed to transfer the adjustment items (mainly for non- 
cash debits and credits) to the appropriate balance sheet accounts. The entries 
in lines 13, 17-24 will be closed out by regular accounting procedures to the items 
in the preceding Hnes, as indicated by the letters in the cross-reference column. 
For examj)le, assume a write-down of land: The debit in line 20 of column 1 would 
be transferred to the land, buildings, and equipment account by entering the 
amount as a credit in line 20 of column 2 and again as a debit in line 3 of column 3. 
Attention is called to the fact that both the depreciation charge (line 13) and land 
and plant revaluations (line 20) are closed out to the land, buildings and equip- 
ment item (line 13), and that the revaluations both of receivables (line 17) and 
of inventories (line 18) are carried up to the current assets item (line 1). 

C. Instructions for Entering the Source a'nd Disposal Items (Columns 

5 AND 6) (Form A) 

These columns are derived by consolidating the period's adjustments with the 

period's excess of debits and credits. Note that even though the depreciation 

and depletion charge (line 13) was carried as a debit adjustment to the land,. 

buildings and equipment item, it is also entered as a credit item (source of funds) 

- in column 6 of litie 13. 



APPENDIX F 

STATISTICAL TABLES FOR REFERENCE USE— SAMPLE OF 
SMALL MANUFACTURING CORPORATIONS 

These tables are basic to the material on small manufacturing 
corporations discussed in the text. They were compiled as special 
tabulations (proposals 7 and 14) ^ at the Philadelphia Incorrie Tax 
Study in accordance with. procedures outlined in appendix D and 
the data are subject to the limitations there discussed. 

Because Federal income-tax returns, request balance-sheet data for 
the beginning as well as the end of the year, it has been possible in 
many of these tables to include the year 1925. The identical samples, 
however, are rarely complete for that year because some firms did 
not present the beginning-of-year balance sheet. Hence, differences 
between the 1925 and 1926 figures should be used guardedly. Finally, 
the tables published here incorporate a few minor revisions not avail- 
able when the analysis in the text of this report was made. 

The tables are not numbered consecutively. Omissions represent 
data compiled but not published here. These data are of less im- 
portance but will be maintained in a Source Book by the United 
States Treasury Department in Washington, D. C. This Source 
Book is available for research purposes to qualified students repre- 
senting accredited organizations and to administrative officials of 
State and other Governmental units. In the appended list the 
headings of these omitted tables are given. It may be added that all 
the composite tables in these original compilations give the break- 
down between income and no-income companies while the published 
composites show only the totals, and that certain data shown only 
for selected years in the published tables are given annually in the 
original compilations. 

Table 2A; Year-to-year changes in balance-sheet items for an identical sample 
of small baking corporations classified into income and no-income companies^ 
showing the aggregate amounts over the period, 1926-36. 

Table 11 A: Frequency distribution of companies based upon the identity or 
lack of identity of State of location and State of incorporation by asset size for a 
sample of small baking corporations, 1930-36. 

Table 12A: Frequency distribution of companies and percentages of total by 
the ratio of funded debt to capital stock, cross-classified by asset size and by 
failure or survivorship, for a sample of small baking corporations, 1926-36. 

Table 13A: Frequency distribution of companies and percentages of total by 
the ratio of funded debt to capital stock, cross-classified by geographical location 
and by failure or survivorship, for a sample of small baking corporations, 1926-36. 

Table 14A: Frequency distribution of companies and percentages of total by 
the ratio of capital stocii to surplus, cross-classified by asset size and by failure 
or survivorship, for a sample of small baking corporations, 1926-36. 

Table 15 A: Frequency distribution of companies and percentages of total by 
the ratio of capital stock to surplus, cross-classified by geographical location and 
by failure or survivorship, for a sample of small baking corporations, 1926-36. 

' Proposal 7 was merely an extension of proposal 14, in which the Inventory item was subjected to further 
tabulation. Proposal 7 tables have been joined to those for proposal 14, the only distinction between the 
two proposals being one of administration at the Income Tax Study. 

199 



200 CONCENTRATION OF ECONOMIC POWER 

Table 18A: Frequency distribution of companies and percentages of total by 
the ratio of current assets to current liabilities, cross-classified by asset size and 
by failure or survivorship, for a sample of small baking corporations, 1926-36. 

Table 19A: Frequency distribution of companies and percentages of total by 
the ratio of current assets to current liabilities, cross-classified by geographical 
location and by fiailure or survivorship, for a sample of small baking corporations, 
1926-36. 

Table 20A: Frequency distribution of companies by the ratio of statutory net 
income to economic income for an identical sample of small baking corporations, 
1926-36. 

Table 21 A: Frequency distribution of companies by the ratio of statutory net 
income to economic income for an identical sample of small baking corporations, 
1930-36. 

Table 22 A: Dividend disbursements expressed as amounts and as percentages 
of economic income available for dividends, for an identical sample of small 
baking corporations, 1926-36. 

Table 23A: Dividend disbursements expressed as amounts and as percentages 
of economic income available for dividends, for an identical sample of small baking 
corporations, 1930-36. 

Table 25A: Frequency distribution of companies by the ratio of officers' com- 
pensation to economic incortie for an identical sample of small baking corporations, 
1926-36. 

Table 26A: Frequency distribution of companies by the ratio of officers^" com- 
pensation to economic ihcome for an identical sample of small baking corpora- 
tions, 1930-36. 

Table 27A: Frequency distribution of companies by the ratio of cost of goods 
sold plus operating expenses to sales, for an identical sample of small baking 
corporations, 1926-36. 

Table 28 A: Frequency distribution of companies by the ratio of cost of goods 
sold plus operating expenses to sales, for an identical sample of small baking 
corporations, 1930-36. 

Table 31 A: Frequency distribution of companies by the ratio of rent paid to 
sales, for an identical sample of small baking corporations, 1926-36. 

Table 32 A: Frequency distribution of companies by the ratio of rent paid to 
sales, for an identical sample of small baking corporations, 1930-36. 

Table 35 A: Frequency distribution of companies by the ratio of dividends to 
sales cross-classified by the ratio of officers' compensation to sales for an identical 
sample of small baking corporations, 1926-36. 

Table 36A: Frequency distribution of companies by the ratio of dividends to 
sales cross-classified by the ratio of officers' compensation to sales for an identical 
sample of small baking corporations, 1930-36. 

Table 37A: Frequency distribution of companies by the size of economic 
income cross-classified by the size of dividends for an identical sample of small 
baking corporations, 1926-36. 

Table 38A: Frequency distribution of companies by the size of economic income 
cross-classified by the size of dividends for an identical sample of small baking 
corporations, 1930-36. 

"Table 39 A: Frequency distribution of companies by the size of economic income 
cross-classified by the size of officers' compensation for an identical .sample of 
small baking corporations, 1926-36. 

Table 40A: Frequency distribution of companies by the size of economic income 
cross-classified by the size of officers' compensation for an identical sample of 
small baking corporations, 1930-36. 

Table 42A: Frequency distribution of companies by the size of net sales cross- 
classified by the ratio of rent paid to sales for an identical sample of small baking 
corporations, 1930-36. 

Table 45 A: Frequency distribution of companies by the ratio of cash to cur- 
rent assets for an identical sample of small baking corporations, 1925-36. 

Table 46A: Frequency distribution of companies by the ratio of cash to cur- 
rent assets for an idbncical sample of small baking corporations, 1930-36. 

Table 47A: Frequency distribution of companies by the ratio of accounts re- 
ceivable to current assets for an identical sample of small baking corporations, 
1926-36. 

Table 48A: Frequency distribution of companies by the ratio of accounts 
receivable to current assets for an identical sample of small baking corporations. 
1930-36. 



CONCENTRATION OF ECONOMIC POWER 201 

Table 49 A: Frequency distribution of companies by the ratio of notes receivable 
to current assets for an identical sample of small baking corporations, 1925-36. 

Table 50A: Frequency distribution of companies by the ratio of notes receivable 
to current assets for an identical sample of small baking corporations, 1930-36. 

Table 53A: Frequency distribution of companies by the ratio of working capital 
to current assets for an identical sample of small baking corporations, 1925-36. 

Table 54 A: Frequency distribution of companies by the ratio of working capital 
to current assets for an identical sample of small baking corporations, 1930-36. 

Table 69A: Frequency distribution of companies by the ratio of mortgages to 
funded debt for an identical sample of small baking corporations, 1925-36. 

Table 70 A: Frequency distribution of companies by the ratio of mortgages to 
funded debt for an identical sample of small baking corporations, 1930-36. 

Table 71 A: Frequency distribution of companies by the ratio of economic 
income to capital stock for an identical sample of smaU baking corporaticfns, 
1926-36. 

Table 72 A: Frequency distribution of companies by the ratio of economic 
income to capital stock for an identical sample of small baking corporations, 
1930-36. 

Table 77 A: Frequency distribution of companies by the ratio of officers' com- 
pensation and income to capital stock for an identical sample of small baking 
corporations, 1926-36. 

Table 78A: Frequency distribution of companies by the ratio of officers' 
compensation and income to capital stock for an identical sample of small baking 
corporations, 1930-36. 

Table 81 A: Frequency distribution of companies by the ratio of sales to 
tangible net worth for an identical sample of small baking corporations, 1926-36. 

Table 82A: Frequency distribution of companies by the ratio of sales to 
tangible net worth for an identical sample of small baking corporations, 1930-36. 

Table 91 A: Frequency distribution of companies by the ratio of repairs to gross 
capital assets (excluding land) for an identical sample of small baking corporations, 
1926-36. 

Table 92A: Frequency distribution of companies by the ratio of repairs to 
gross capital assets (excluding land) for an identical sample of small baking 
corporations, 1930-36. 

Table 93 A: Frequency distribution of companies by the ratio of other assets 
to total assets, cross-classified by the ratio of economic income to capital stock 
for an identical sample of small baking corporations, 1926-36. 

Table 94A: Frequency- distribution of companies by the ratio of other assets 
to total assets, cross-classified by the ratio of economic income to- capital stock 
for an identical sample of small baking corporations, 1930-36. 

Table 95 A: Frequency distribution of companies by the size of net sales cross- 
classified by the size of total assets for an idsntical sample of small baking cor- 
porations, 1926-36. 

Table 96 A: Frequency distribution of companies by the size of net sales cross- 
classified by the size of total assets for an identical sample of small baking cor- 
porations, 1930-36. 

Table 97 A : Frequency distribution of companies by the size of dividends cross- 
classified by the ratio of current assets to total assets for an identical sample of 
small baking corporations, 1926-36. 

Table 98A: Frequency distribution of companies by the size of dividends cross- 
classified by the ratio of current assets to total assets for an identical sample of 
small baking corporations, 1930-36. 

Table 101 A: Frequency distribution of companies by the size of dividends 
cross-classified by the ratio of surplus and undivided profits to total capital for 
an identical sample of small baking corporations, 1926-36. 

Table 102A: Frequency distribution of companies by the size of dividends 
cross-classified by the ratio of surplus and undivided profits to total capital for 
an identical sample of small baking corporations, 1930-36. 

Table 103 A: Frequency distribution of companies by the size of economic 
income cross-classified by the ratio of depreciation to gross capital assets (exclud- 
ing land) for an identical sample of small baking corporations, 1926-36. 

Table 104 A: P>equency distribution of companies by the size of economic 
income cross-classified by the ratio of depreciation to gross capital assets (ex- 
cluding land) for an identical sample of small baking corporations, 1930-36. 

Table 105A: Frequency distribution of companies by the ratio of total taxes to 
net worth for an identical sample of small baking corporations, 1926-36. 



202 CONCENTRATION OF ECONOMIC POWER 

Table 106 A: Frequency distribution of companies by the ratio of total taxes to 
net worth for an identical sample of small baking corporations, 1930-36. 

Table 107A: Frequency distribution of companies by the ratio of nonincome 
taxes to total taxes for an identical sample of small baking corporations, 1926-36. 

Table 108A: Frequency distribution of companies by the ratio of nonincome 

taxes to total taxes for an identical sample of small baking corporations, 1930-36. 

■ Table 109A: Frequency distribution of companies by the ratio of nonincome 

taxes to net worth for an identical sample of small baking corporations, 1926-36. 

Table llOA: Frequency distribution of companies by the ratio of nonincome 
taxes to net worth for an identical sample of small baking corporations, 1930-36. 

Table 111 A: Frequency distribution of companies by the ratio of nonincome 
taxes to cost of goods sold and operating expenses for an identical sample of small 
baking corporations, 1926-36. 

Table 112A: Frequency distribution of companies by the ratio of nonincome 
taxes to cost of goods sold and operating expenses for an identical sample of small 
baking corporations, 1930-36. 

Table 113A: Frequency distribution of companies by the trends in total capital 
and in income for an identical sample of small baking corporations, by periods 
1926-36. 

Table 114A: Frequency distribution of companies by the trends in total capital 
and in sales for an identical sample of small baking corporations, by periods 
1926-36. 

Table 115A: Frequency distribution of companies by the trends in total invest- 
ment and in income for an identical sample of small baking corporations, by 
periods 1926-36. 

Table 118A: Frequency distribution of companies by the ratio of accounts 
receivable to current assets cross-classified by the number of years before failure 
for a sample of small baking corporations failing between 1927 and 1936. 

Table 119A: Frequency distribution of companies by the ratio of notes receiv- 
able to current assets cross-classified by the number of years before failure for a 
sample of small baking corporations failing between 1927 and 1936. 



CONCENTRATION OF ECONOMIC POWER 



00 . CO o 



t-H CD 1-1 CO 



s ^ 



S2 S3I2 

to m 

to oc" 



to « •» 



203 



t-os •—a; 



lg s 






•S .2 



Oi COt« CO cm *Or« OO 
O iCOO CO 00 t^CO w* yt> 



^ CO oc O lO lO (NO 

lo r* cs to t^ r^ w oo 



00 —4 



lo o OS c^r- »o ^ uti OS 
r-< icoo coco t-o CM^ 



T?* lo ■^ 

r-« CO 



■^ r* OO 



ic . 1— 



CO w rt o 



»0 iQ -^00 



T-H O 



00 O 00 00 CO lO CO OS CO 



--• C^l 



b-w woo t-fO 

lO CO M< W t-- OS 






J " H ° 









•o a 



•5^3 
.2 6 o 

g^a 



E c 



G 
C 




a 
a 

a 




C.3 

<D O 


a; 


a 

o 


3-- 


3 


P 


a> 


■^ fi 


OJ 




H 


0) 


s 


Z^i 


tl 


y.< 






■< 


y 



-<- o" 



»o -v 



>o -- 



^? «^ OJ 



3 S 3 
0-" o 



^ w hij fe 



p' o o 




204 



CONCENTRATION OF ECONOMIC POWER 



--s «C •« «00 *0 "5 



S-^eo ^00 O"-^ loos coo »b- 



00 « ^ 



s 



Nt^ i»e< 



2 S 



S 5 



-Jl^ O COM 1/5 -H 
OOO •O' 00 -^C< 



s 



w- 



«> 



o Nt 



1-1 M 






S 5g 



OS* cf 



lO Tf F-< M l« COO U5C0 

to >n '«• «» M- 



ss 



M S S5" f^§ ?5o 



lo as ^H ic 
r-oo OOO 



t-H r-< r- 



.<00 



>o 



CO 



?3 2 



SI s 



2 §8 "-S 

I— lO CO 



8 S 



S2 
Si 



ftn tc^ 



rsc to '«'SS t-co >-<< 



to t-. 



^ w « 



S w« 



rt rt N 



:S S^S 



5<0 tO'* rt « 
-CO I^« QOi 



CO i-l 



2 2 S 

OS I- to 

S SI SJ 



•J » 



■o 00 t^ ui 



00 >5 ii 



N « t- 

^ $ s 



iOh» t~o> -H t 



SI 



CO toto t--^ 



t-'i SP 



25 



« rt C* CO 



8 S 2 



SI 81 



£5 ^^8 






too i^'^ OOO {»< 
•3.S t-iA sg K- 



i-r~ 00 "Ot 



SI SI 



» i i i " 



« s^ 



too to to -- 
rti ^ %a to 

00 »'5 CO *-t 



>oo i-io 00 too 

t^ O 00 3 t^ ^H 

05 CO to CO 



S «l S 



SI » 



;g SI 



8 S 



'i'go r- to 



2 '^S 



us C4 OS to iC 
h-T*" t~t- 00 

00 CO m 



!3S 



& 



!5g 



O S 00 

rH e» rt 

a lo S 

t~ 00 ci 



«eo oogi 



ptc oo 



fe 2 



«» M- 






a 

.. eJ 

a ^ 



.9<! 






<Uj3 H CO 

■« aS £ 



30 



aSa: 






O O O 03 

O E-i e « 



ao 

SSg 
4530 



•S-flgs 

a " S S 

§30" 

o 



S"S 



>^ 



3 0a 



ant, 



a o'i 






t 3 

§0 






Is 3 
0"3 : 
■§11 



o a 
Si 



•§l| 



5 e ;z: 



o o 



3 :5 2S2 S g ?5 S 



S 8 8 



CONCENTRATION OF ECONOMIC POWER 



205 



2S? a 



«c N 5S - r; 



S2 



0000 C4V 



kC U) 00 t» 



c3 ?5 S 



"5 00 1- 

s '-a 



o tj ^*^ '"^ & 



SI s 



^ & 



S3 «& 



»-iOC ccoo 



»-i ^ra 00 Oi c^ 









— — to 



§ s 



SI SI Si t» 



R SJ 



© a 



SI ^ 



as 



•00 o 

<0 00 






CO ^ CD 9 



r* h* oooo ec»o 



i s 



t» 11 CO 






2 g 



•-< *0 ^ •jt 

^ r^ «^ S 



SI s 



i-i rt ro»o 



ss 






t* -H kC I^ 00 •" 



OS ^ CO 



a -i -< 









o> « ■* 



^ «» 



3' sC 



tool 
<ojo 



oxo ooc 
loeo «t 



MO t~« 



.00 N t^O 



t^'* osoo was 



— N 06 



3 S 

si si 



^ s 



SI 1 






t- to c 5} o 



l:: SS 



OS — 



CO a> 

si si 



s 2 



S| z 



«» w <» 



^c6 fO t^ 



>w o»r» coo tDt» ooti< 

)Q »0 00 '14't^ t*C« t^W 



SI SI 



^- s 






'8 SE= S 

'-^ ^ lO 



w s s 



2i s 



s ss 



SI ?; 



I- CO o 



lO «co 

« to 



t~ OaN lO* 0>0 N 



r-C lO 1-1 



_ O Nt 

t' o « 



«» s» s 



^- SI 



Sf3 S S 

CO o S 

s s s 

lO to .^ 

s «» <s 



gt: a 



So Sc 



r^lO COC4 t*tO 



"CO 'H 



sg g g 



«l «» «4 



3 i 



M <S S 



c»8 G S"} * 

o> 00 c5 lo 



Sin oco o» 



N -H t-1 



« OS 



w SI «4 






oacp 1-H »o Q f-i 



SI 



eo 00 



Ntp -« 



§ i 



S 2 
«^ SI 



I i 









5S 2 

00. t-> 



£ S 



CO I* 
CO --I 
-1 OS 



SI 



Soo -^S S*^ t^-" 



^"*o »o F-t < 



S S 



". '"^ SI 

sg ^ "^ 



>o o 

si ^ 



<s B 
S8 
So 

.sis 

.all 






sS 



il §§ti 

*r C 



■eg 



.2 1 



<! ^ 



•S-° 3.2 35 § 
^ S o -c c •= o 

§|s&s&a:i 
=1 ;z: ^ <i 






g o 

S 3° 






■Se- 



■.2 p. 
•SaagSasaa 



■aao 
05 a 



7,-^ 3 

® a ° 
53a 






a o 

ail a 



5 2 « 2 

sa^B 






^ 



51 



5 •* 



206 



CONCENTRATION OF ECONOMIC POWER 







s 




^ 


^ 


^H 


t^ ^ 




ss 


CO CD 




S 


—100 


r- Oi 


Oi m 




CO 00 


t-oo 


c- 


^3 














r* 00 


-"?; 




■^CO 






t^h- 


t-C^I 




TfCO 


05C0 


toco 






<c 




bi 




"^ 




« 




lO 




00 




o 


g2 


Oi 


t- 






to CO 




00 






CO 




lO 




Oi-' 




•o" 


g" 




■* 




-1'" 








oo"" 


s 






o"cm" 




s" 






oi 




CO 




p. 








>o 








«/> 










?5§g 




0-. 










c4 




>o 
































S^ 


















•as 






ffi 












^ 


«^ 






«« 












CO 




Ol" 












































a? 
































































































c^ 




w 










WIO 


OOO 


lO CD 




05 00 


Oi t- 




CMOS 


■cP 00 
TP CO 


\r 


30 










f^ 






t-^ 


5 






CD 00 


■* t^ 




r^ 




t-Ol 


t-t^ 




CO TP 


co-> 






lO 




o 




CO 




C^ 




«3 




t~ 




a 
















on 






CO 




c^ 




^ 




^ 


CO 




t>r 




■o 




t-T 




Oi" 


<3l 






Oi">o" 




»o" 






OS 




o 




tC 




t-- 


<!^ 








cq 




€^ 




^ 








OOOi 




>o 










w 














*c* 






















CO 


















^ 






«» 




«» 










«» 






€^€^ 




ffi 










-^ 




g 
































































































-«** 


C<! 


f-H 


t^03 




ID—I 


00 CO 


00 OO 


—H CD 


t^5D 


r-^ 




(NO 


CO <N 


-^ -«** 










oo 




o 


t^Ol 


§5 




«0 tH 


■*co 




CO 


Oi 


t^CO 


t-C5 




CO Tf 


T^ LO 


CD -t 






1 Tfl 




CO 








^ 




o 




r- 




•— < 


«^ 


tH 


»H 






CO CM 




CO 






s 




00 




00 




CO 


co" 




^ 




^ 




■*" 




^ 


o" 






Co" cm" 




00 






c& 




o 




lo 




t>. 


f/i 








CO 




o* 












CO to 




TP 










CO 








^^ 






s 




se^ 










»> 






«»«« 




M 










"icT 




a 


ooo 


o c^ 




t^ CO 


00 c^ 


iC t* 




t>- •»*' 


t^tf 




00 CO 


CO tP 


^ ■* 
















w 




oo 


^IN 




^- 




r~^ 


t-t- 




(NO 


OC' t^ 


CO "O 






§ 




oo 








1^ 

CO 


a> 




lO 




iO 

to 




co" 




(£ 


t- 






lO CM 
00-^ 




CO 






O) 




t-- 




00 




iO 


۩ 






CO 




«* 




S 


c^ 






cor- 


















c- 

^ 




a* 






«* 




s 








«9 


ffi 






6S«« 




lg 


























































oa 




00 


00 t- 


o to 




t^co 


t^ 




to-' 




CO Ttl 


ooo 




Oi CM 


T-^ lO 


CM 00 










05 




CO 


«o o 


,-<a, 




to 00 


Tf O 




CO 




t^iO 


r-cc 




-H CO 


CMOi 


CD CM 






M 




CO 








-* 


<ra 




■<J< 




•<f 




CM 




CD 








T}' o 




-" 






2 




CO 




CO 




CD 


ffA 




«f 




oo" 




co" 




co" 


c^ 






co"o6" 




t-T 












CO 




■* 


eo- 








>o 




«g 






di 






rt tP 




CO 












^ 










CO 












«5- 


^ 






— ' CO 




CM 


















«» 






<» 




««• 
















«j<» 




(» 










^ 




Ǥ^ 












































CO 




00 


~ 


o 


M CA 




t-<o 


OC 00 


lOCD 




M CD 


00 00 




00 CO 


00 CM 


INOi 










S 




c^ 


t^ t^ 


i-l OS 




«>§ 


•^ oa 








r-t>. 


f-CO 




TfCO 


■^ 00 


to CM 






,_, 






a> 




00 


o 






00 




s 




o 


Oi 






CM to 




o 






CO 




rC 




to 




CO 


^ 




o 




^ 






«- 


s" 






CM't^" 




oo" 






o 




a> 




»r; 




<o 


«» 




CO 




00 








r- 






t- t- 














05 




(ft 




^ 






fe 




s^ 








<fi 


«» 






U^ 




1^ 
































,,^ 


























N 




gg 


CCCI 


-H lO 




sa 


i^ 


■^ 


t^ tr- 




0-* 


tOOi 




CO 00 


OiM< 


COOl 










a> 




(OO 


•-H t^ 




•*co 








t-1-i 


t-t- 




« CM 


t^Oi 


too 






o 




Ol 




CD 




to 


to 




o 




O 




o 












t-CM 




CO 






o> 




o 




CO 




o 


^ 




^ 




oi" 




Os" 




^ 


s' 






b-Tc'i' 




io- 








o 




r- 




OT 


(fi 








00 




«o 




00 






coco 




t^ 










^ 




00 




«e 






i 




«o 








«» 


Se- 






Ss^ 




s 










U5 




to 


Tt< CO 


00 o> 




^^o 


r^ 


^ 


ee 






rt CD 


cot- 




■* t- 


IOTP 


-HO 










o 




t^ 


cc 




CO 




CO CO 


■«"0> 




IN 




t- CO 


t- CO 




CO— 1 


OS 00 


to •-> 






as 




s 




« 




lO 


s 




lO 




t~ 




00 




t- 








Tp CM 




f-H 






s 




fe 




CO 




o 

s 

«» 


w 




s? 
s 










fe 


€» 






o"t--" 














A 




»5 












































i-H 




s 


<o r^ 


>oto 




gl- 


■*o 


ooo 




0"0 


"5 CO 




-< o 


— c tP 


a^ 




f2 






CO 




c^ 


«c 


§§ 


t^ 




^ 


CO 




•^ 




t-t- 


t- CO 




CO CM 


CO tP 


to ■* 




00 




o 




rj< 




^ 








(N 




<N 




o 


t^ 






■OtO 




o 




»» 






Tf^ 




lo" 




00 


<ft 




■^ 




co"" 




o" 




Oi"' 


"co" 






C-J-i" 




o 








Oi 




■^ 










w 




t^ 




6^ 




CO 








00 05 




t^ 










« 












^- 




















TPf« 




^ 














O 










fn 




(H 










60 






«^ 




























































€«■ 




««• 




























































































s 






s 




CO-i 




Oi lO 


t^ 




CMt^ 




— 1 CO 


toio 




CO 00 


oco 


00 TM 












c<» 


Ci 


00 




oc^ 








Oi 




t- t-- 


t-a. 




CO— < 


lOlO 


lOCO 






g3 




■^ 




ca 




OS 


fe 




o 

00 




Oi 




C^ 




co 


o 






t- 00 

■o'oT 




a> 








r^ 








r- 






o 












t^ 








t-CO 




Oi 










00 




?- 




S- 










«■ 








so 


»5^ 






tO(/t 

(fi 




u 


























































•^ 






lO Oi 


■* ^ 




OrP 


c 




CO 


00 






lO lO 




O CM 


—1 o 


lOO 










oa 




<N 


«? «:! 


r^ 




r-m 


»c 


w 




CO 




to o 


t^ w 




»o C^l 


Oil^ 


lOiO 






«3 








CO 




o> 


t^ 




CO 




CD 




t^ 




o 


t- 






tOOi 




00 






C-J 

05 




q:; 




r-C 




§ 


t 




e" 




CO 




s 




g" 


oo" 






t>-"o 

Oi to 




$ 


















«ri- 






s 




ss 








"" 


!/i 






s^ 




SI 










o> 






































C^TP 










05 






































u- 


■^ 






lO 












































CO 










to 








































:d 








O) 








































ro 










^ 








































i!l 










: 


















































i 


§ 














■E? 




































1 
















a; 








i'^' 






























& ; 












C 








. «> 


en' '''° 




























o 














o 














t/; 




































a 






is 






O ' 


0; 












s 










c 










1 
i 

o 




a 


= 


' a; 


c 


Vi 

B i-c 


a ^ 


a i 


'E 






c 






a 






^ 


'•o 




'i 

C3 

O 

c 
c 


!_2 
'is 


i \ 

■S : 

C3 

a 

e : 


.2 

s 

a 

2 
o 




C3 

c 

s 


! J 


C3 




lii 

" '.S 


a 

3 






c 






3 






1. 

1 


is 




1 o 


o 

a 


3 


s 

CJ 




C 

o 


1 Im 




o Is 


1 

c 


gi 


i-l id 


s 

o 




I?. 

9. 


o 
'o 






-k9 


[ 


5 


ZJ 


1 c 


o ' 


o 


o 


a 


I- 


sl 


t. 


■M "^ 


I- 4-i ^*^ 


t-^ir 


'-^ & 


kH 


■^ n ^ 


tT tx"! 


l_ 


-" c 


t-t 


4_ 






1 ^ 


! a 






Z3 




c 


« 




Ho. 
cE 


oi c a) 


O □ V, 
■S3S 

^l5 


sea 






a> 


EH ^ 


S; 


a 




P 


*j 


o 




o 


9 
a.£; 


o \ 


£ 

E 
o 


o ^ 

If a 


6 


c St 




E o £ 


2 ■- 


E 


hil 




E 


3C- 


E 


3 
o 




s 


a 




s.s 


Jl 




3 


Era 




E| 


- C 5 
o 


sE5 


3 


B 


E 


3 


3 


s 




'EJi o^ 


S s 


s 


*^ 




£ 


"1 

Eh 


2^ s 
o 




:2; 






Z 


o 


:z 


«^ 




r^ 


X 


o: 




g 




J 


cl 




CO 




^ 


id 


CD 


r-^ 






00 




oi 












'f 


S? 




t-O 




« 




>o 




■o 




lO 


»o 






aO 






»o 







CONCENTRATION OF ECONOMIC POWER 



207 



OOS OC't- 030 '-'-* 



■<*'CJ OOO C^O tN"^ 



S;:: 



lO-H ■-.lO 









c^" 




•V 




rn 


cT 


to 


8 


■^ 


ccf 


?5 




,^ 


^- 


p 


?^ 








zi 




in 




^ 


'^ 








^ 






«? 




u 






^ 


































s 


M(^ 




COIN 










f 


















































»~* 






TO 




«© 




CD 




M 


US' 


cs 


a> 


<m" 


m 




■s 


r^ 


o 


O 


S 


.« 




N 


o» 



t>.»0 coo 0> TO TOOi CO^O 



,-100 ^-H.-! TO< 



iOI~. t^' 






^ lO ■* W lO lO 



)^ .-IC 



1-<^ t^C 



^ »0 1-HC 



T-t *0 t^t^ »0 O OOC^ Ot^ "rf GO 
CO •-* CO 05 «-H »0 



ss 



t^ (N rH oa 

>0 O IN 05 



C^ iO t^ TO 00 M5 rH 00 OO 00 IC »0 OS 00 

Jhc r-ih: TOO! "30 r~OJ «oc^ ■«•« 



0> TO 

TO y^ 



S$ SS8 



rH t-. rHT»l 



■«"■* 00>O rH 00 00-^ CCN 2« 



lO eo r- 00 co»o 



>« TO< 
< rH K« 



* T-^ iC O 0*0 



TfoO c»to 

C^ rH lO ^ 



00 1^ ICCD CD-^ rHOS OD"^ <CCO 
CD rHTO TOTO iOt* l^gj. «D^ 



C^ t>- TOO 



rH NM ■>*> rH 



rH CD 



2 ^ 



IC c^ ooa> 



->c t-CD oos 



rH U5 CD r*0> CD»0 -^ O 



TOCC rH O 



lOCD CDTO 
N rH •*0 



«» rt rH 



rH lO rH 



(NCO >OCD 



Ol^H r^ CD CTO rH c^ t^ o 



.rH t~ t>. 



rH CO **}• CO »C O t^ IN CD C^ Tj* W t^ 00 



>0 rH 



IN rH 



rH CO rH Oi 



CD O O C^ corf, OC CO coo C^ OS 



lO OS t^ CO 



CS rH 



,rH TO *C OS 



C^ o t* CO OS O OS O COOS 
rHOS y~^ f>* TOrH -^J* CD t^ t^ 



TO rH C^ OS 

NCD O »0 



f-l u^ »o C 



rH ■* t-IN 

rH — rHCD 



■T3 O 
O t, 

c « 

U1X3 



g.i 



3 0-2 3 

Bgaa 






sa 

X o 



-a s 



«ao 

.S3 a 



sa 



&1H, 



sa 



D O. 

1^ a 



Sa 

28 



a.9|a 






5S 

t3 o 



Sao ao!?aosaoc<.a°>-ao«ao-s°'ia2S 
3p B ..| a.S 3 a tp a g| B^l as I a o § a.s § a- 

ti S- S o o ^ t- ^ -5 

3cOr— Oi_,t-o3c3*^lr 



•«::^ 






208 



CONCENTRATION OF ECONOMIC POWER 



s ss ^1 



2 


s 


8 


^ 


1!^ 




«oeo 


o 





8 S 



g s 



s S. i 4 

S» S 3? B 



ON •«*< '^ 



«5 O 



3 (:; 



00 r. e^ ujr- 



M S 3 SJ S 8 S 



§s s: ^ 



•«> «o -< 



S2 



00 S § 

■« 00 



lo »ot-. -^ : 



a s 



s g s 






w:i Oi ^ ^^ 



1-1 es 



t>- ^ r^ »-l .-^ 



o6 S ^ 
n S o 

s s s 






C4 a» 40 1^ 

S S S S 



3 s 



ga SS 55J5 "'g ff § 

o r>- Od '£ o» «o 

Cf S 2 gC 8 S 

** » Sl 8 




S 2 2 



00 t* to t>- 



t- N Ol 

ro oa I-- 

o t~ N 

H g ^ 



i? «» ^ «» 



» S 



yfn MN 003; t»g 

coco N ^ coob « 

00 © -H l-H 



s s 



3 S n 
SI ig ^ 



"J" 00 r- 
1" 00 



«5 Sm 



25 Q —* CO ^ 

rt as -< •» «* 



-H -< •-' ^ 



2 i i 



^09 — 



35 2 



«M O S 



i s 8 

1^ ^ 35 



a> ^ ^ 



U g 



M — < «& 



•O 



^g J5? §S ^^ 

r^ t>. ^ ^ 



^ ^ 



s =; 



^S J5 



m m» "-■ < 



00 --1 









-! » •^ 



"mZ 



3 J 3 CJ 
O © 0"3 



rB 



w o 



■oB 



J a (S rt 'O 01 rj O ^ 

i-« ^ y 13 ^ ^ — I 



a. 2 



■ii S arr ¥ c =i 



- "' 3 ='- 3 t; 



J4«-« 






r- r- W 5 



- -'':_ -i-art 3^ 0.3^ -S 3X1 

3as|s|3ag^a2|BSsjssa|E^ 
I 5 IS fa g2 o 






aaSa 



- 



CONCENTRATION OF ECONOMIC POWER 



209 



o «-; •*£« '-•-< •♦2 



f<o ra mo «ofi c<<e Tt<n a>< 
•^ tc •*♦» 35 « is ^^ ^c 

o o •* oo f o t 



2 S 



n W -HO 



(D CO go ^f t^ ^O O PO »oco -^ o» ^ WQ 
•ji M» ■*05 "-iQ '^co ^ rt ■*§ N rt 

o» »-< rt 00 00 ^* OS 



5 S S 



<e CO 

s Si. 



?i R ^ z 



r^ >n •r 



rt « « N 



S S 



"O ■«f <o too 



<Q Oft 00 C 



» E - 



2 S 



?5 2 K 



S 8 - 



CD C>o» ecu) 00 <■ 

^H W CO ^ CO »^ c 
t^ rH N « 



==3 "^ 2S g5S 3 

05 O <0 — t- 



u 



t* ^ o> 

s i ^ 



s s 



i 3^ 






)f5 «M t>.^ 



s E ^ ** ** 



^ 4^ ^ 



> t>. *oeo 



rco> on MM 



;s ?3t 



m «» 



1^ i:; 8 



b- •*eo iO0» t»-< 
5g coo -^oo .i-H 



"§ ^g 



""»■ ;S to — 



ceo ■>*"0 



S 2 



SI 



>C — 1 -H 



-H — W M 



s a 



^ lOO "COS ■woo 

•H co« ■*-< 'H K 

to o »o t^ 

C*5 o I^ "^ 

CO t» O UJ 

o «* S ^ 






^ T-T "^ J5 



t»co tOM i-i ; 



2S 28 S5 5 

oT cf cT ® 

3 § 3 15 



s s 



MQO »«U5 »OCO W30J 



^ — t "^ £2 



•J* CO -^ «? ^ 

rH 00 00 



«► «5 



8 8 3 



-i -H -5 CO 



usr- >o t~ 



rt I-I M M 



Is 

nil 

8if 



^ 






1-.0C rt -H rt lOrt 



tr to 



V 6 



-Sa 



! •" S> i? *» S b ■< 






r:5 



SR 



Sg- 

•li 



a a 
* 5 
S8 



-i. M -H 08 

e^ fj to ■" 

o oo -2, 

Q Cf OS 

?5 00 o 

t^ i& 2 



CON o» S. 



S S? 9 



^O »o •O 



« 5 



ii-|liElil^§J 



a9| 



H PQ 



Z<%Z 



o 

Eh 



I cj»-i-^ CO 



l§. 



-<g:z:-fla<;«z 






5 H 2: 



o o 



ii°iaiii.s|isi 

o S c i 
09 <! H O 

S^ ^ s ^ 



-8 






210 



CONCENTRATION OF ECONOMIC POWER 



»- is 





o .-1 I- 


CON 


ss 


tot^ 


U5CO 


COO CO 


^i. 


(NO 


->)< 00 






, 


tCOO 


»-i cs 




CO *o -^ 


hi ira N IM 


CO CO 


Tjt 10 


•V" 


^ CO 


t^ 


TJIOS 






■* § 


00 OS 


s 


Tt< o 00 00 


CO 


t> 




rt OS 




CO 










CO --T 




t-T 


00 


00 


N CP 





CO 


oT 






oT 


of o" 


Oi 




5 S 


% 











CD 


f/i 


10 






10 


co o< 




M o 




S a» 


T(< 


E 




•& 




«=► 






«» 


t^ 00 




€^ 99^ 4^ 




s^ 




































































<» «* 


«/» 












«» «» 




CC OJ OO r- 


^ CO Cfl 


tO-i 


S?3 


w* 


§s s 


COCO 


oqco 


to© 






§i 


^ ^ 




CO CO c^ 


5 «d 


H IN-* 


IMN 


Tf CO 


■*« 


00 


■.«<0) 






t: £^ 


ic 


OS 00 CD OS 


CO 


■* 


CO 


OS rt 




CO 


t^ 






(^ 


00 Ol 


K 


tC hC lO" CD 


00" 


CO 


^ 


t-T to- 


10 


eo" 


eo" 






eo" 


of g- 

t^ 00 


o> 


gS c5 S fe 


«■ 


e-) 


g 


ol CO 


o5 


«9 


g 






SI 




<««««« 




e^ 








































































w- «e^ 


«» 












«» ««9- 




•ooo o> (?<•*« 


TfICO 


U5 


to-* 


ift 00 


00 


COM 


CD^ 






CO?!" 


>o oq 


^ 


«>■* <N CO (N -H 
N lO CO o 


"§ 


CO 




•* W 






Til so 
CO 


s s 


$2 


otT r-T IT 


r oT 


^ 


os" 


of 


s s 


^ 


^ 


CO" 






g- 


of o" 


OS 


c* 


5 T) 




5 S 


CO 


s 


to 




«» 













c« « c> 


1 «e 


«» 


U5 


00 c^ 














r~ t^ 




«9 ^ «9 




«^ 


<» 


^ 




































































«» 














«» <» 




-* w CO to e^ -1 


CO CO 


ss 


COI?» 


■0< U5 t~ 


COIN 


CO "3 


COQ 






coS" 
-* 


OS CO 




CO O O O C^ CO 


csoo 


Tj< lO 


T)<0 


■»»< >o 


>o 


TT 






CO -^ 


fO 


t^ Cr> >0 CO 






00 


CO t^ 


to 


OS 










■* 00 


55 


i-h" O op M 


s 


to 


US 


oT t-T 


»-f 


,-^ 


efl- 






CO 


t-T a 




3 1--. 






t^ 00 




«» 










OS 00 




?3 ?S c^ «& 




?3 




OS tH 







«» 






V* 


CO K 




Vi ^fi </> 




«» 




«« 




































































««• 


«» 












«« M- 




■^ CO OS OS w *o 


<NCO 


c^ ->»■ 


CO CO 


10 g 


■0 1^ 


N m 


ss 






coco 


CD CO 




CO-* ci 00 Mco 


CO 00 


■''S 




•*o 






"* ^ 


>o 

« 00 


IN 


t^ CO 05 -to 


t>. 






5 N 





eo 


OS 






CO 
03 




r § gs fs 


% 


t^ 


s 


5 i 


?f 


S 


3 








2" 00- 




« 0> CO «9 

«« «« «4 


** 


«l 


s 


sg 




^ 






<e 


*"! *^ 






















































«» 














«» «» 




>0 00 OS OS ^ w 


■* CO 


S| 


coeq 


>o — 1 10 


U3 00 


N CO 


ooq 






10 o» 


-H 00 




"J5 S S ^S 


"S 


^g 


^S K 


■^s 




•*^ 






•*^ 


eo IN 
eo o» 


s 


§ g ? g 

S 14 8 «» 


i 


8 

CO 


s 




■*- 


?c 


of 






of 


8 S 






«» 


«» 




t» 






«e 


Si sj 




















«» 
















U5 IT 


S -Tt* ^ 


< 100 


«OiM 


cq -o" 


^i 


«fi>0 -H 


«r- 


1-1 -H 


10 CJ 






WOl 


N OS 


^ 


"Ss S S '^S 


"^S 


CO 00 


■VCO « 


Tjit- 


i 


■^2 






"*2 


8 2 


a 


i^ CO >. »o t-T 


fcO" 


OS- 


^ 


lo ^r 


t-T 


00- 






00 


00- 0" 


OS »o ^ 


OS 


s 




OS 


t~ 


CO 




OS 






OS 


CO -^ 






Cv 




3 «» 


CO 


s 










tX 






•O" 




^ fi^ €^ 




«* 










«» 






«Q^ 




































of of 


















Vi «© 


«^ 












«i Vi 




WCO 00 C^ c5 OS 


^S" 


rtOS 


5S 


lOCO t~ 


:§?5 


—t^ 


■oqo 






WOO 


IN 01 




CO t^ 


•"••t~ o> 




"^ S 






■vg 


CO -H 


1 


rt m 00 t=- 




00 


CO 




lO 










CO t- 






















Vi 












CO (O c« c^ 


CO 




os' 


id ■* 


w 










OS 


i § 


^ s s ^ 


^ 


CO 


N OS 

CO 00 


t^ 




3 










«9 S» «» 
























































of of 
















Vi 


Vi «» 


«» 












e» (ti 




C^ 00 C*" 


rH CO CD 


ss 


-10 


5S 


U500 IN 


« Q 


eo *o 


^S 


•;:, 


U3 


10 CO 


s § 




CoS 00 c< -CTo 


"8 


■* CO 


■* 


23 




^ 


T(.b, 


00 


00 OS -* rH 





CO 


OS eq 







OS 






r-l t^ 


s 


§ 5!" § §" 


"5- 
OS 


N 


1 


s" s" 


s 


S 


g 




«» 


^ 


sf § 


^ 


s gl s s 


^ 


SI 


^ ^ 


eo 




s 






v^ 


eo CO 






















tJ-T 












of of 


















^ *9- 


«» 












Vi vt 




CO »o »« CO ^M 

CC CO ^ *o Nco 

« r-» i-H o 


^» 


S5§ 


5!| 


?^ S§ 


^i 


o»t~ 

CO 


5S 


o» 


O 
00 


ss 


i5 eo 


l>. 









CD r- 




t^ 







t^ 


t^ 


8 


CO CO CO o 


g" 




3 


of rjT 

to ■* 


s 


<« 


s 




co- 


s" 


§ s 






(fa .^ 




CO 


^ 


CO CO 


-"j^ 




■^ 






■* 




«» €^ «e^ «» 




M- 










e* 






«» 




































O) O) 


















^ «^ 


«e 












J«__6^ 




CO ■<*< ic eo ■«** OS 
CO t^ t^ •-< C<l ^ 


ss 


000 
CO t^ 


;j| 


ss 


S 


5?: 


coco 


'a" CO 

^ CO 


N 


S; 


oco 

^ 00 


" s 


:0 


""cT 


CO CO -^ 




CO 




IN 


OS 


«> 






OS 




•* oq 


g 


tc »- 


" *rs oT 


co" 


t£ 


00 


00 o~ 


0- 


o" 




^ 


01- 


•O" 00 


en 40 .h^ 


N 


^4 


rj* 




C^ 


s 


00 




i« 




«^ 


<o 


t~ rt 


*^ 


«^ S ^ 5J 


<» 


s 


fe 


Cr 






S 






• s 


w 


































of of 


















^ €^ 


«» 












» Vi 




iC cs 


Ci" 


C" 


CN» 00 


-< OS 


I^T»( 


-1 


ss 


2 


51 


o»g 


CO -H 


^ 


i 


OSO 


S " 


lO 




%. 


S 

c 


c^os 




NCO 


'^s 


^S 


s 


CO 00 




"S 


8 S 


g 




"* CJ 


»r 


■*" 


00" 


CO* 


•-T 


c- 


co" 


,_r 


^ 


CQ- 




o" 


co' 


OS ■* 




1-^ 


u- 


u- 


TJ< 





r^ 


t- 


0: 


^. 


■^f 


f» 


01 








^ 




(« 


SI, 


% 




(N 




SI 




«» 


*^ 


00 OS 




















































^ «9 ■ 


6^ 












*» i» 




« 




















































t> 




■a 


•a 


















































a 


a 






2 








































w 




03 


_« 










































\ <>> 1 




a;) 












s 








































£; 




biS 


6U 






o3 






























<C 










c 




a 


.9 

■n 






^ 






























c 






: o- : 




.2 J 


•5 


ai 





« ' 


.si 


s 




i 




S 1 


i i 


i \' 


^ 




a 


S : 


i| i 




"o'a 


3 


_3 


1 


a) 


'3 ' 




•a 


J 


a 




a '< 


'a 1 


a ! 


■a 




■a 


a ' 


' a ' 




•^ ce 


"3 


"3 




03 1 




0! 


03 




08 1 




cs ; . 


C3 




v 




1 ® ! 




S-S 




.^ 


a 


t-i 


a 


a ; 


a 


'.^ 


a 




o- 


a 1 


D. 


0. 




S 


a 1 


'5 1 




^S 


& 


a 


*» 


s ; 


a ;•• 


a 


E 


a 




3 


a 


a '-^ 


a 




'> 


a ; 




^! 


1 





.8 


•T3 

-3 


, 

r 




8 


jO 

.2 '-' 


3 '• 


8 ;^ 


8 ; 


1 i2 

i£ 







S8 : 


la 1 
1 1 






i^ 


^^ 


1!. 


d 

■A 


i^ 





c 





'O.^J 


1.2 


'1 

U4 jj 





4J 


3 


' 

U 4J 


;a ; 


> 


•2^§ 


■3 £ 


i§ 


ss|s 


So? 
•5 3 >i 


l§? 


l§fc 




bJ) 00 


111 


l§ 


l§^^ 


is 


a> ri .. 

■S§5 


s 

a-9 9 




.2 9 = 
S 3 = 


.S 


■2 


fe 3 °3 


oa 


a oi5 


a t; 


a 


a a 


a'2^ 


a o-§ 


a 


aoti 




§■2 


§•3 


j= 3 9 m 


sS'^ 


33g 


3 


aa 


.aa- 


5^^ 


sas 


a 


3 


as 


38° 






2<! 

7: 


;2 


< 5 




2; 







z< 


1 1 







iz;" 


3 







S 




CO 


CO 
CO 


CO 




CO 


-X 


CO 






^ 






OS d 

CO -^ 




■* 


01 


S 






1: 




■* 


CD 



CONCENTRATION OF ECONOMIC POWER 



211 



s ^ 



N CO OO N ^ 



-:> t-( -^ OOO 



w ic 



<^ ^-^ 



CO o ^ o 



lo ^ CO '^t' t^ T-i t-^ o Tj- Tj« cow r^ ■^ 



O CO '-f N 



O 1-t CO 1-H o 



00 w^ 



CO CO rH t>- CO lO N T-H 



i-H ^ 



CO t^ O O CO f- 



'^ CO 
CO h- 

CON 



t^ 00 rj< •-< iC 00 iC ' 



t- rH 1-1 



CO -^ O 1^ I-H N 






O CO CD Tf O 



OCO I-* lO 



CI ■^ 1-H CO -^ 



COCO »0 l>- b- CO t>- CO 

CO 25 '^ 



$1, 632, 883 
$4, 745, 703 

12 

$6, 357 

1 
$247 

44 
$391,655 

43 
$116,349 

5 
($22, 355 

40 
$11,636 

43 
5:31,238 

22 

24 

$121, 825 
$109,812 

19 
$301, 504 

$30, 617 

14 
$280, 576 

17 
$420, 121 

9 
$9, 913 


$1, 652, 442 
$3, 989, 139 

11 

$5, 138 

2 

$482 

41 
$376, 716 

42 
$131,613 

5 
($6, S4S) 

25 
$5, 889 

38 
$9, 828 

41 

$6, 020 
$431,920 

18 

$210, 505 

4 

$3, 788 

16 

$189, 572 

16 
$318, 187 

10 
$15, 150 


$2, 029, 988 
$5, 514, 299 

9 

$5, 219 

4 
$1,080 

43 

$458, 122 

42 

$174, 095 

5 
($1, 385) 

26 

$8, 617 

37 
$13, 152 

11 
35 

$37,115 
$318, 246 

17 
$273, 038 

2 

$4, 092 

15 
$306. 561 

16 
$363, 3ie 

8 
$21, 689 


$2. 293, 050 
$6, 521, 224 

15 

$5, 262 

3 

$781 

43 

$572, 942 

44 

$201, 485 

1 

.$454 

27 
$9, 955 

41 
$18, 997 

18 
28 

.$61, 713 
$165, 807 

18 
$300, 608 

3 

$5, 669 

14 

$405, 885 

16 
$406, 780 

6 
$13, 632 


$2. 363, 621 
$7, 666, 588 

15 

$5, 215 

4 

$1, 579 

44 
$650,461 

44 
$203, 6.50 

4 

$2, 780 

25 
$1' 1,173 

41 
$24, 853 

34 
12 

$153, 390 
$16, 663 

20 
$427, 957 

$36, 552 

9 

$202, 047 

20 
$768, 668 

8 
$69, 323 



00<D COt^ Tf'C'J lOlC 



a, ,-< 



tOC-i cct^ 



OCJ 



OS ^ 



«? " 



T(<o t* N ma> cq«o ca-* 

rH CD -^ -^ »0 ft* O OO 






cq ^ (^O " O 



tH CO « 00 F- t^ 



o -^ ^ 



00 05 a>c^ 



IMi-l CC M 



ICO 00^ t^OS "i'Cfi wo iO^ O'^ 



C*^ 1^ CC o 



OOCO IM- 






OO lO lO 0000 OO W5N 

,-i -rjf -ti O t-i -IH W 

'ij' iO O O O 

irf" CO 1-*^ ■^'" n" 

CC ^^ a> '^ CO 

N e^ -H ^ «^ 



.9 



a o 



o " 

"S.Q § 

a a 2 

S 3 S 



o « 



■3 o 

0,3 

a 



•20 
■a o 

ce.Q 3 

"3 re 



s0 



00 



00 

!-: 3 



« > .. " 



a- o 



-o o 



SB 



c o 



o; 
§0^ 



c & S o S ! 



1^ 






«?; 



3 ^ .5 5 



lZoj 



S 5 



-No. 15- 



-15 



CONCENTRATION OF ECONOMIC POWER 



J 



CO 



pq 



"g ^S SS 

■«i eo "5 



t- fn cor^ 



ei' of 
3 , c» 



lo ^ w egs 



S^ t» 



'g ^i H "i "I 
^ § I a" S' 



'S V^S ^^ N(o -hSS c%»o 
«» o 09 »o r^ t^ 



2 SI 



«J; S?3 SS I ; tiS Mo8 

« p_^ Til " *"- 

^ «» Si 1 I 5» «& 



lOt» NPJ MOO 1 I 

s -s -^s 1 1 
So' 1^' si 1 1 



CD ^ o r^ 

S.^ coco 

CO or 

e^ a" 



s« ujoo "OM •<«<e2 «oo —10 ""t £2ft S2J 

**■ 2 a' te s ^ fe 8 « 



SC SI 



■*£? S2 !SS "'S 22 

1*- C* t^ W CO CD T-4 ^ 

CO CO N * •"• 

g* ui r* o" tT 

»o oc "? ?5 



rt -H <* 



"5 ::s 



S -J t~ 



lot- ^ p 



lot* CO t* 



r CO »0 CO-OO 

I fi CO rl --H 

I 00 •* 

1 cf ej 



I J28 2S 

I CO 03 

1 e<" 'a 



^ r^ t* »^ »^ cc 



•-< t-Q t--" "«'9fi "a ^2 "Si 2S '"'2 1 1 Sm 2S 
S 2 g 8 4 S ^ fe i i S IS 




S (5 <S (2 s o 



CONCENTEATION OF ECONOMIC POWER 



213 



's-^ r^ 



ss 



t* i-t-^ lOOs OiOO "3C 

O »Oio -^ fO uar- CSC 



I § 






»-i .-H r» ^^ lo 

E § i 1 i 



> ^ CO CO V^ Oi 



O) O 00 00 



1-1 a> 
to t^ 



^ ^ 



<-< *» 






m5 loS 



t- to 



5< S 



to CO ^^ 



w ^ 



>e4 >oa» osi-i 



SS 2 



>o to <-< 
o o ■* 

CO U3 rH 



2 a 



«» « 



>Ot^ NN 



s s s 



^-' «» 



•^n ^t~ >ot^ CO •* 

-H 00 ■* IN to 



a^ r-, ^ 
€e ««■ €«■ 



too g 

to et5 r? 



'to " O 1-t lO 

<m toto M to 



13 S 



■«J<05 lOOJ 



sn 



s w ^ 



ooo »o 00 C<l o 

IC* ■^rH tOOO 



O 03 



a^ 



■rt O 



a 



«|a«a|a|3a-3|a||a|3a 



a a>'S b a"— 



■SagS: 



i-^a 



aT3^a'5 



^11 






^ s ^ 



^ 10 oocj lot- a>r>. e<>'>j< -^ 

22 rt ■»Jia> MIN "O-^ CJtB >o 

'-I ^ »-l *0 ^ 05 »o 



■* »j 



-^s 



«^ 



55 



•S3 
a o 



I 



H W 



fl 5 



IH M 



214 



CONCENTRATION OF ECONOMIC POWER 






'8 

s 






<» 



■to 









8 



J*' 

Co 



O 

I 

1-1 

CQ 





lO 


o> 


OlOg 


Tjirf 


o 


o 


00 




1-1 >o 




■^ T3* 


O -t 




10.CD 




■^ t^ 


CO 


CM 




cc 






Tf 




CO 00 




s 


00 


.-1 IN 


00 




1^ 




i« Ol 




COIN 


coo 




com 




CDiO 


CD 00 




^ 






OS 






CO 


lO 


CO 


rt* 


•^ 


CD 


Ti* 




N 




o 


00 




o 




00 




1-1 




o 




in 


o 




'"'oo 


00 


"O 


^ 


CO 


,_r 


■*" 


00 




oS 




■^ 


r-T 




00 




>o 




os" 




cT 






^ 




og" 


<3> 


CO 








o 












t^ 


in 












t~. 




00 






^ 






s 


60- 


</> 


E 


00 


e5 


rf- 




^ 




SI 


Vi 




1-^ 




oo 




r- 




03 






^ 




* 












«» 


se- 


»? 














s 




5 




f/i 
















(N 


O 


00 OS 


ce lo 


w 


o 


2 




00 CO 




>ot- 


-H O 




■* ■* 




■^ -^ 


"io 


^ 




c^ 






'S* 




Imos 








"^. 


"^S 










■^ rt 




coco 


CO Tf 




CO •* 




coco 


coco 




o 






o 






lO 


03 


CO 


en 


CO 


»o 


'"' 




w 




Ol 


CO 




1^ 








o 








moo 




o 


1 


of 


o" 


r>r 


t-^ 


IC 


co" 


^ 




oo" 




lO" 


11-i" 




Os" 




^ 




in" 




Oi 






^ 




^ 


CO 


lO 


00 


CO 


TJ< 


00 


t^ 




^^ 




Ol 






-<JI 




o 




CD 




lo 






in 




o 


i» 




£2 


:2 


t^ 




■* 




«^ 




CO 


«e 




■«:ti 








CO 




iC 






«» 










««■ 


€«■ 


€^ 














«« 




























^ 






^^ 








SI 


SI 














s 




«^ 




^ 




«e 














n 


^^ 


OJO 


■*s 


CO 


c< 


M 




oooo 




■O i-< 


00 r^ 




lOCO 




lO CO 


~ 


^ 




»c 






TJI 




CO CM 




t^ 


CO 


-HOC 


T-H W 




CO 


CO 




•TjH in 




oco 


N-* 




CO CO 




COi-i 


to in 




Ol 






oo 




1-1 ^ 


•"tj* 




C<l 


t^ 


CD 


'^ 


o 


t^ 










CM 








cc 




t- 




■^ 




CO t^ 




5 


s 


^ 


^ 


co" 


co" 


o 


^ 




co" 




-*" 


Ol 




cm" 




_^'- 




1131 




o 






co" 




o" 








» 


r^ 




o 




-1*1 




N 


»o 




Ol 




»r3 








OS 










o 


© 


^ 


6? 


,'~ 


IN 


CO 




(fi 




s 


«e 








IN 




3 










«o 




«s 












in" 


co" 


n" 


























co" 
















^^ 






e» 


OS- 














69 




a> 


- 


in 


- 


^ 

■^ 






CO 


- 






^ 


t^ 


U5-* 


■*■« 


t~ 


^ 


in 




«« 




lO "5 


oo 




lO M- 




lO •* 


NCO 




ai 


t^ 


T-H t^ 


^ lO 






00 




O 1 




CON 


COOS 




CC Ol 




CD 00 


c^ 


'.O 




h- 






00 






CO 


o 


lO 


f^ 


OS 


o 


o 


t^ 




N 




^ 






IN 
















^n CO 




§ 


oT 


-^ 


"5 


S"" 


00 


UO 


t^ 




m" 




h-" 


oo" 




n" 




o" 




c/^" 




<:S 






co" 




i 


«g 


r^ 


CD 


c^ 




^ 


o 








o 


00 




■^ 




CO 




r- 










<3S 






«> 


1^ 


^ 


00 


CO 




^ 




s 


«^ 








IN 








■^ 






«> 




«« 












u 


^ 


si 














s 




s 




si 




^ 














^^ 


o 


—1 00 


S8 


CD 


CD 


■* 




coco 




ss 


Clio 




>oo> 




in T(< 


OCM 




OS 






OS 




-H«5 




r^ 




1-t t>- 










lOCO 




CO o 




CO Ol 




coo 


cc 












oo 




w^ 


IN 


00 


to 


•**« 


Ol 


CD 


lO 


o 










CO 








lO 




o 




00 




00 00 






1 


oT 


rH- 


-"J^ 


co" 


lO 


s" 


■^ 




m" 




o 


^ 




co" 




5 




o>" 




co" 






CM 




■*" 


s 










IN 


00 








r^- 


Ol 














Ol 










00 




s 


■* 


00 


IN 


lO 








■* 


«^ 




o 








o 




CM 










Si 




«^ 




»> 










^ 




€^ 
























f/^ 










^^ 






s 


tg" 


II 














S- 




s 




s 




^ 


































































t~ 


>o 


■*c<5 


MO 


CO 


CO 


Ol 




1*00 




CD »0 


coco 




■ot~ 




m CO 


oo 




TP 




00 CO 




NO 








»-H CD 


'^S 










lOOl 




^'S 


CO -^ 




CD Ol 




CO 11 


cc 






w 










rt t-~ 


,^ 


o> 


to 


o> 


o 


Ol 


00 




CO 




CO 








X 




o 




»o 






o 




m 


§ 


■s 


(N 


oT 


s 


s' 


CD 


o" 




CO 




00 


^ 




•^ 




in 




o 




Tt^ 






cm" 




irf" 


CD 






00 


o 












C4 


00 




r^ 




m 








05 






OS 




t^ 






Tj^ 






■* 


Ol 








t- 






•^ 




CD 




o 




CO 






v^ 




9» 




60 


«« 


«e 


e& 










^ 




(» 


^ 






































g 


SI 


si 














s 




5 




«« 




A 






































































■* (N 


28 


o 


o 


IN 








coco 


CO CO 




»0 lO 






CD 00 




CM 




t- o 




coos 




05 




rt o> 




c-< 






lOCO 




CO 00 


COIN 




CD CD 




COOl 


CD 






CO 






CM 






o 


CO 


00 


•"* 


CO 


CO 


CD 


CO 




CO 




Ol 


« 








CD 




OS 




CO 






o 




'^S 


o> 


<N 


^ 


ss" 


■«r 


oo" 


c4" 


o" 




Ol" 




^ 


t-T 




^ 




QQ- 




os" 




o" 






\o 




i 


'J" 


CD 


OS 




t^ 








•^ 




lO 






M 


















o 






«e 


<« 




ee- 


s" 


lO 

co" 


o 
■*" 




«► 






««- 




Ol 




°" 




ol" 




o 






•^ 
















««■ 


«/^ 














s© 




«s 




&» 




m 














« 


^ 


■* U5 


coo 


« 


•o 


o 




■^ 1^ 




lO ■* 


moo 




i^ji o 




^ Ttl 


~ 


^ 




Ol 




t- o 




CO OS 




« 


(M 


1-1 O) 




t^ 






lOOl 




CO 00 


coo 




CO CD 




cof- 




s 




Ol 






CM 




^ ■-1« 


Oi 


00 


'J- 


lO 


CO 


■* 


o 


CD 




00 




CO 


■* 








o 






OS 






o 




o 




o 


Tj^ 


oT 


oo" 


TjJ" 


co" 


f-f 




co" 




^ 


co" 




m" 




co' 




CO" 




o 






ao 




CO* 


3> 


IN 


CD 


00 






t- 










00 








o 




o 




o 






o 








-<I< 


O 


a* 


«© 


o 


SI 


Ol 
CO 




^ 




° 


«e- 




■<*l 
ci" 




m 
<n" 




CO 

cm" 




c» 
in" 






^ 




«» 




€«■ 


S- 






a* 








S- 






«©- 








^ 




6^ 














Ol 


T^ 


^|g 


coo 


CO 


CO 


CO 




t-^ I^ 




cOrt 


lOCD 




iC CO 




m « 


coo 




CO 




00 in 








05 


r^ 


I^ 


t^ 


CD 




lOO 




CDOl 


CO 00 




CO r- 




coco 


coo 




>o 






r~ 






00 


lO 


>* 


o 


CO 


CO 


OJ 


o 








00 


t^ 




■* 




c^ 




CO 




-* 














cS 


ci 


lO 


"O 


00 


CO 


Ol 




o" 




in 


(S 




^ 




<N 




•^ 




CM 






oT 






o 


CD 


lO 


t~ 




o> 


■^ 




C31 




•Ttl 


M 




lO 




t^ 




Ol 
















■^ 


«» 






o 


CO 


Ol 




93- 




o 






CO 




^ 




CO 




■^ 














«» 




<^ 


۩ 


^A 


s 


II 








«4 


s 




8' 




u 




ce 




eg 






»9 








t- 


CO 


CO-* 


coo 


OO 


00 


IN 




00« 




Ti-ei 


IN t^ 




lO t^ 




in 00 


cot-- 




CO 




00 CO 














-lO 






>a 




Ti.r~ 




CD CI? 


CO o 




CO t^ 




CO in 


coco 




00 






CO 






^ 


o 


i-* 


c^ 




■* 


CO 


00 




o 




00 


CO 




(N 




os" 
CO 




CO 










OS 






g 


OtJ" 


•^ 


^ 


IN 


■o 


IC 


00" 




oc" 




00 


cd" 




co" 






CM 




o 






o" 






5 


o 




CO 


o 


CD 


00 




o 






Ol 




1^ 




CO 




CO 




CO 






CM 












CO 


00 














'^ 




c^ 








Ci5 




o 














«» 


^ 


** 


» 


l>f 


u 


co" 




«> 




s% 






in" 








cm" 




m" 






6© 
















(^ 


€^ 






















f^ 




«» 














OS 


CQ 


CD» 


WO 


CO 


CO 


^ 




CO o 




If CO 
CO t^ 


CO »o 




^1 




inS 


CO o 




CM 






CO 








1^ 


d> 


e<5 












oco 




COC>» 






COO 


CO OS 










CO 






<o 


o 




00 


c^ 


(N 


-* 


IN 








00 


00 








'J'" 




— ^ 




-H 












3 


oT 


^ 


og" 


^ 


irf" 


cc" 


»o" 




oT 




^ 


oo" 




■o" 






oo" 




■w" 






^ 








o 


o 


Ol 


OS 


cS 




oo 






t^ 




lO 








o 










CM 






»o 






CO 


00 






^ 






«» 












o 




» 














«^ 


»> 




«» 




II 


II 








m 






in" 




IN 

60- 




M. 




■^ 






^ 










^ T 




























,_, 








00 




















r-* O 


Oi 


Ol 










coco 


Ol 1^ 




TJ1 t-^ 




■1^ 00 


in 






•o 




t~ 


t-n 












o> 


-HO 


■* 


•^ 


■* 








CO -- 


ClOO 




coos 




COOS 


COCO 
















i 






O) 




c^ 




CO 








CO 


lO 












(N 










t~ 




































00 
























?< 




CD 


t^ 


o 








Ol 


t~ 












CO 




















o 








CO 








o 


1* 




t; 




CO 




00 




OS 






o 












CO 


t^ 


o 










1?t1 


«& 




IN 






























«« 


f» 


u 


II 


II 








««- 






<» 




c^" 

6^ 




cm" 




i>i<" 
so 






^ 








; 
o ; 




J j 


0^ ' 






i 




0) ■ 










2 1 




a 




"i 






; 








'i 

o 

s 

03 


•£ ! 






















































2 ', 




S i 


'3 ! 






1 




'5 i 




C ' 


p . 


a 

a 


'S ! 




a ' 


c 








ij 


"i 


1 


c 


'5 ' 






03 ' 


03 > 










03 < 






03 ' 


03 ' 




03 1 


ea 








B 


03 




u 


03 ' 




"S ■ 




0. : 


o. : 










a ; 




c 1 


D. : 




o< 




ft 1 


Q 








a) 

3 


o 




R 


a 1 




I; 




S ; 


S ; 




M '. 




• 


a ; 


c 

a 


a ; 


S ; 


« 

2 


a ; 




a ; 


a 


; 


- 




£ 






a ; 






o 


o 




o- : 






o 




Q^ I . 


o , 


o. ; 




p 


o 








s 


p 






o 




iS ! 




o 1 


.. u 1 




O 1 




e 


u ; 


1 


(-^S^ 1 O! 




03 




'i 


o , 


a 




i 




a 






o , 




T3 ; 


00 ' 




^o 1 


^ 1 






Ol 


11-4 -^ 


■g 


a o s 




t> 














> 






s 






P : 


9 • 


.."o ; 


M 1 




i- 


'^ 


c 


O ; 


s 


° ; 


03 

> 


O i 


"o 


1 ^J 




a 


"3 




a 


O ; 








1 "'S 


O u*^ 


0*j 


3^ 

11 


si 

11 


V 




c 
a 

c 


^ 4-> 




(-1 -«-> 


V- -*^ 


u< 




a 






u 




(--i^ 




■sal 
2 3 a 


"m 


X 


II 


5§ 
a o 


w 


a 2 


S o"E 


a 


a 

3 

o 




a « 

O C8 


J2 

a 


§-S|g 

o^s a o 




» a 

a 


ga 


^|a 


a^ 

o 


36 


33" 


3a 


c 


3 a 


Si 


3B2 


3 


a 


a 


X 


3 


a 




59 






^Z-o) 


o 


o 




•z<< 




1 


z< 


3 


z< 




^^1 

h-1 


z 


o o 


2; 


"^■g 


Z<i 




« 


[^ 


£ 


o 


h 


r* 


pq 




;; 




< 


H 




&^ 


z 




5 






d 


(N 


« 


■* 


ui 


CO 


t-^ 


oc 




c 


c 




?i 




?i 




s 




CM 


s 




s 





CONCENTRATION OF ECONOMIC POWER 



215 



i^o ecr- 



S g 



U51-I CON <Dtr> rao 

^ M ^ CD -rfOi <Ot^ 



ic to t-H r:^ 



.— r- C-l 



00 tOJ* t»5 



M rt 



-^fe 



tON 



S SI § 













cq 


on 


'^SS 


SS 


ton 


cq w 


ION 


o 


lO-H 










































'"Ss 




n 










o 














■» 






•»»< 




rp 


(O* 


^ 






s 


a" 


^ 


f_r 


^ 


ccT 


in" 








w 


!f 
























































































































































fft 


e^ 


«l^ 










«& 


i^ 


60- 




«? 




















■^ t^ 


NOO 


lO >o 


«■* 


lO —1 




lOrt 


-"^ 


^S 


-8 


"ofcr 














gq^ 




'S 














DO 






<D 




o 














i; 




'"' 




eo" 


^ 


^ 






co" 


?h 




^ 


c4" 


^ 


CD- 


Co" 




R 


o" 




e^ 


















s 






^ 










^ 










































«• 
































































f^ 


«=■ 












»? 




t^ 




f^ 




«i 








-f 


low 


ro 






CSN 


t^ o 


CON 




^ 


lOt^ 




loo 


N2 


lOCO 


■^s 


^S 


"S 


S 


■O M 


Jo 


o> 


CO 


Tt^ 


•^ 00 


""•^^ 


^?i 




«-a 




•^3 


3! 


""S 


s' 


s 


PS" 




S 




s 


CO 


oc 


s 


s 


g 


^ 


s 




g 


1!^ 




















































































































«« 


«=■ 


«« 


























0!N 














■a- Oi 


l-<t~ 


^m 


■*IO 


lOO 


a> 


■ooo 


eoN 


SS 


I-HIO 


co>o 


































S 


^ 




o 


OS 


o 


00 


















•^ 


'~* 






lo" 






QQ- 


cc" 


co' 


lO" 


r- 


IN 


t^ 


o 


CO 


s 


co' 


t^ 


r^ 


oo 






























s 








































«fe 


*^ 




««^ 


S 


s 


ti 












N 


» 




<« 




«» 
















S5 






NfO 


CD.-; 


CO 


^s 


"^ 


COIN 


'^i? 


cot-* 




































o 




cs 


O 




r^ 


























^ 


^ 


^ 




^ 




s 






c4 


oT 


■n* 


s 


t; 


N 


in" 


•* 


•* 


a 


§ 




o 


to 


m 






i^ 


o 


CO 


■>!< 


<» 


'^ 


«^ 


^ 


</)■ 


«■ 


^ 


g 


«• 


6^ 


c^" 










6© 


s 


a» 




S 




s" 


Oi -^ 


:?:r-, 


TJ< O 


^, 


C IC 


m 


00 


S3r5 


c^ ■* 


5g 


CO ^^ 


Sfe 


iO 


CDOJ 
CO-* 


N05 


ss 


'^S 


SR 


C^ 


05 


t^ 




-^ 




■* 




























^ 




^ 






^ 


^ 


tC 


CO 


O 


o> 


oT 


fc 


s 


00 


t^ 












R5 










































CO 




























































^• 




i^ 










€«^ 


^ 


«© 




^ 




«» 


















COM 




coco 


lOCO 


CO 


«00 


CO w 


coco 


coco 


«S'5 


















"!4i 




















c 


00 


ov 


o 


CC 


TT 


^"3 


■<»• 








^ 


^ 




•"^ 




^ 


^ 




^ 


^ 




^ 






'^ 




S 


2^ 


^ 


00 


s" 


N 


t^ 


s 






























ii 








































































































^ 












f^ 


«e 


€^ 


e^ 























coco croo CO <Nr^ •c :::j c^ ^c--; i-h g 
cc a> CO Tt< »c t^ ;c o too »c ^oj es 



—^ ^ CO 



1-1 CD CO 00 ^ 



Cfl CD NO IC *0 



CO '<T' CO Oi lOC^ CD T-H 



Sail 



N C» N N lO O 

COO CO'* •* •r' 



-co CD Tj* -* COOO COO 



^ S €^ 



-H COM CO-* oco COO lOw CO 105- loro wcg ifoo "Jgl 

CD CON coco »OCO COOO CD»0 O CO"* O t003 S-; ^K 

OCOCOOIO.-I^^H»HOSCDCO 

odocfcTN'coN'oriocft^sD'SI 

coSKcOrt<cp-*cOCDg5NN 



E CO 

0.2 















1.2 

'"S'S 'J 

■eg 'j 



C3 I C3 *5 



; a^ 













.■0 




J • • 






' IS 










; cs 
























1 <B 










i.a 






















! 3 








; 


, a c 


D 









' 03 


: n 


c 


^ : fe c 


- ; 0. 




ta 


'V.b 


: S 






It: 


1 














'■c^ 




J^^ 




' P c 
*J « 1- 


•^ c 








n 



'^ c 



J5 3 
2-;: 2 



i!ii 



._ o~ o ^ g o 
&Eg-E£36 

COS 

^ 2; 



■& 3 E 



<j s 




fc SS 55 o i-i N CO •*' 

*^ N N coco cococo 



216 



CONCENTRATION OF ECONOMIC POWER 



r 



^ 



i| 
■I* 



8 S 
T3 ;s> 



*^5 
»? 8 



8 



CO 



O 



< 





S3 


g 


§ 


51 


S5? 


2g 


OS CO 




?IS 


**2 




MCO 




S| 


>OOS 
CO t^ 




g?S 


as 


CMO 

COOS 




00 






CO 


^5 


S 


00 




o 


■<i< 




CO 




o 








•>»< l-H 




i 


§- 


s" 


s' 


tC 




1^ 




§ 


«» 




** 




o 


§ 








2S 


s 


*^ 


s 
s 


OS 






«» 




«o 




<» 










s 


S- 








co«» 


_^ 


lO 


o 


05 


5 

CO 


?5 






Si 




CO 


2o 




coco 

IS 




S| 


§1 




« 


5 


is 


^g 


S2 




^ 


o 






CO 


oo 




oj 


iS 










8 








Sfe 


S"' 


OS 




Oi 


o 




SI 


«9^ 


t^ 




o 


f» 
















t- 


'"' 


3 


CO 


io 


CJ 




»» 




«9 










«» 


M^ 








«»M^ 


SI 




■^ 


V 


■^ 


to 




































«e 


m 


<A 


a» 
















__^^ 


__ 








___ 










1 


o> 


^ 


^ 


CO -^ 


(O •-< 


Si 




00 CM 


0>0 




coos 




Sg 


lOlO 




t-OS 


11 


tjlco 


ss 


t^ 


00 


8 


^s? 


S 




CO t~ 






g 




tog 






•<* 


eogj 


cT 


^ 


rC 


ifT 


o 


Si 


tC 




^ 


^ 




,_, 




ui 


CJ* 








t-Too 


^ 










OS 


s 






o 


*9^ 




««• 


CO 


«8 








<55a 






o 




iO 


t^ 


^ 


















««^ 








«9CM 






















s 




















<» 






^' 




_!. 


t 




































r* 


^ 


>o 


^ 


N.H 


r-co 


t^co 




OS 00 


00© 








■*00 


2I 




■"fCM 


98 ■= 


eoS 




S5 


Jg 


?s 


00 


^§g 


00 


s 




coo 


OS 
CO 








COrH 

o 




CM ^ 


^g 


CO 


cnT 


»c 


^ 


^ 


ci" 


5 


CO 




oT 


o 








cm" 


CM 








t~r-<- 


tcT 






I^ 




o 








o 










t^ 


OS 








-<eo 


CO 




00 






CO 












«» 








60- 


(^ 








rtJN 


3 




















«> 




















«»«^ 




t 


>o 


-* 


■a"" 




































«» 


Vi 


«o 




































__l 


03 


■^ 


05 


»o CO 


-•tlOS 


»c t^ 




^H rH 


t^CM 








CO 00 


coco 




COO 


^ rH 


coco 




OS 


to 


M 


oo 


TficS 






■W t~ 


CO 








CO CM 


CO 00 






CO 


C3SCM 


CO o 


o 


00 


CO 




OS 




•o 


CO 




t^ 


00 








•"• 


CO 








t^OO 


CO 


52 


§ 


of 


o 


lO 


oT 


cf 


a 




•*- 


CM 








co" 


i 








CM rH 


^ 


o> 


s 


S 


1^ 


«> 


««- 


n 

SI 




CO 


«^ 








s 








SS* 


i 




T]? 


•o 








































v^ 


«» 


e^ 


ft% 




































n 


g 


i 


gj 


ss 


-'S 


OS'S 
•oo 




5g 


ow 








C»CM 
lOOO 


ss 




^ 


•«< 


CD t^ 

1-100 


coco 


^^■ 


00 


t^ 




o 


00 


t^ 


OS 




TT 


'H 








o 










l-H t^ 


CM 


5S 


lO 


W3 


co" 


s 


g 


^ 


^ 




CM 


cm" 








o" 


00 








O 00 


OS 


o> 


cc 


lO 




«» 


c^ 




00 










tc 


1^ 








-i 




'^ 


o> 


CO 


00 


CO 


«» 








5 


s 








e« 


«9 










U5 


s 


lO 


lO" 




































««• 


«» 


«* 














































































M 


1--5 


a> 




»o w 


>ooo 


§§ 




OCO 


ooo 








58 S5 


■OOS 




oooo 




CO •w 
COM 




o> 


00 


^S3 




'O'OO 


t>. 




•"fOS 


M- 








CO rt 




e^co 


ss 


Q 


T»< 


«3 


t~ 


^K 


00 


00 




OS 










OS 










CO 


CO 


^ 


00" 


00 


^ 


o 


^ 


CM- 




oo" 


CO 








<N 


cm" 








coo 


^ 






S 


g 




^ 


«» 






o> 










r- 


TJ< 








i^r- 


OS 
























«» 










-HCO 


s 




















^ 












«e^ 








V^f» 




^' 


fe* 


_^ 


s 




































^ 


o> 


« 


t>- 


5§g 


coco 


OS to 




CO CM 


00 OS 








r~ o 


ooo 




SS 


00 


t^eo 


o« 

CO o 




T(< 


CO 


to 


00 


OS 


« t^ 




■*t~ 


OS 








lOCM 


to-* 






OS o 


s 




t- 


<o 


s 




o 






00 


■«< 










to 








too 




M 


cf 


^ 


>o- 


U3 


M- 


i 




t~r 


Co" 








lO 


^" 








r-Tco" 


cm" 


3 


o 


s 


§ 


g 


^ 


t» 




8 


§ 








u 








CM OS 


!o 
















«e 




«9 












«* 










€^ 




r* 


tc 


CO 


of 




































«<» 


o» 


% 


«« 












«» 


















«9 






CO 


CO 


>o 


s 


oe< 


■*eo 


ss 




oo 


00 00 








r^io 


0-* 




OtO 


t^OS 


•*?< 




o 


a> 


lo 


i^lC^ 






■* C5 


CO 








OtJI 


toco 
o" 






c^ 


COOS 


coo 


S 


s 


TjT 


o 


00 


<N 


2- 


00 
00 




OS 










CO 








CO CO 

too" 


o 

CO" 




8? 




s 


v^ 






o 


f^ 








lg 










CM ^^ 


t* 




o 


OS 






to 




CM 


















SIS 


to 
















««• 




ae 












«e^ 








«0- 




ti 


^" 


Jl 


iS 




































t~ 


^ 


es 


■* 


cjo 


>Otv 


tO-S" 






OS-O" 








co 


"*•:; 




^ 


o 


too 


"cooo 


g 


s 


S 


CO 


s 


''^ 


s 


CO 




r- 








"=§ 




o 


"^ 


So 


"S 










































N 


« 


CO 


(M 


t~ 


N 


t^ 






■^ 








o 


00 








too 


Tf 




s 


s 




CO 


«« 








<»^ 






















•^ 


« 


M^ 




s 




CM 










vt 










■* -H 


s 
















«« 




«^ 












«» 








*»«* 


«» 




icT 


>o 


lO 


S 




































t» 


«© 


«e 




































«£> 


■* 


■* 


^ 


O t~ 


>OM 


ss 




CM to 


coo 




> 




t-CM 


CM O 




^ 


o 


t^t>. 


CM CM 






t^ 


o» 


OS 


tC t~ 


00 




^g 










O OS 


CO — « 




w 




0-* 


coco 




oo 


«o 




o 


US 


■^ 


^ 




CO 








OS 










oo 


CO 


i 


n 


cf 


CO" 


§f 


in 


CO 


d" 




00 


o 








o 


CO 








s§ 


tc 


i>- 


to 


OS 


S 


a» 






OS 










CO 










o 


N 


CO 




lO 










«» 








€^ 










o-«.» 


o 


O) 


















«» 












^ 








«» 


«l» 


^^ 




^ 


s 


r^ 
«» 




































?5 


>o 


g 


































SSo 


U3 


o 


o 


CO 


































t~ 




pT 


icT 


r-T 


































oo" 


S 


lO 


§ 


































s 




o 


lO 


TlT 


































w» 




»» 


6» 


€«■ 








































[ 




2 ; 








t^ ! 1 




























'S 1 




2 ; 








% 






^ 
























a, 1 

u ■ 




% 








Q. : . 




d) 




XI 






















O ' 


s i 


i i 


oi 2 ' 


O 


S ' 


i : 


1> 


_a> 


a 


q> 1 


i 


c 








i i 






q ' 


1 O 1 




a ' 


^5 1 


^a :s 


5 ! 


'5 


3 


'3 1 


a ' 


e 














0? ' 








OS ' 




n ' M 


C3 ' 




CS 


•a 


03 ' . 


" i' i; 


03 
















• (^ 1 


a l-S 


a : 


f|i 


w 


o- 1 S 


p< ; 




a 


» 


a ;•« 


8 is 


a 














9 ;j3 : 


a '. 


a =§ 


a 


c 


a -2 


a : 


« 


a 


T3 


a 1 


a 








a : 






a is ;2 ! 

0) , tt. , o . 




o 






o 


u 


8 


a 


8 ;§ 


8 


1 


^> 


il^ 


s i 






a ; 
if: 


**■ 1 




o 1 


P O , 




O 1 " 


o 1 


? 


o 


O ' O 


O i^ 


o 








O 1 




si 




ki d a a> 


a ° 


o U4^ a 

a S o 5 


g o6"a o 


1 


ai 


a 

c 


iaB 


ai& 


fr4 

s 


d 


C3 


wS ?„'o 

ill! 


Ui 4^ 




2B 


oS'^g 


aa 


isa 


a 


3 ais 


38 


f. 


Sa 


3 as 


3 






' 1 


5S 




t^ 


g-tSS,.^ 




2, > 


z< 


B^< 


3 


^<^B 


Z< 


■? 

M 


2<! 


a 


Z<J;5 


£^<5|2: 






z< 




(O 


o 


(d 


o 






o 




03 




03 




O 


o 










03 






:?; Eh e o « 


O tf 


o 


b 




Z 


&^ 


TO 








« 






^ 


4 ^ 






"O 


■O 


3 




s 




irl 


g 


fe 








s 





CONCENTRATION OF ECONOMIC POWER 



217 



"8 



00 -H »-< ^.-1 



t-l CO COO CD ^ too 



CO Oi i-t CO CD CO 



o •* • c 



«s §« 



S S 2 



S*0 lO-^ t^ OS »-< 00 

»co eoci C400 wp 



^ lO 



»-tOO i-tO C^CO W500 »«C) T*<I^ Wi'* 



lO lo coco 



eo F-«00 



«o lO o 



ss ss 



00 •<!** oi --^ io Tj« e« ■^ cot- b*t* iot£> 
i-H CO CO »o «o a> »o lo coos -^ «3 c^ 



ss 



0> 00 00 ^ 



oow "—eo 



SI 8 



>c5 §Sc 



^^ (D CO O to CO 



CO CO t^-b* 0000 



gg 



s s 



S8 



t— CO OO -H 



05 CO tP t^ CD CO »-H Tf* ^H -■ 



CO .^ 



5f- r~i-i 



r^(M c^ 00 OS CO w CO 



^ •-« CO W5 ^ -^ r-l 



« t- OO'iC -HCO 
•* 00 1-1 



i-i>a oocD 

C^ CO -^00 



^?5 *§ 



oco cs «o 



'S s 



JCJ ^O r-ICO 



CO 1-1 «» 



—I o> ri 



2| 5| 



coo 



.-I CD 



OOS CO CS op-" 
■*« CDt^ •*- 



com .HO QM 

O eo 



S 5 



S3 



i » i « 



f-T eo 



NCO 05t^ 
CO »H ^ t^ 



r-a r;» 






CO CO CO y^ 



no t^lN t^os c»c^ 
CO ^ c^ r^ 1-1 r^ CO b- 



t~eo 1-IU5 






2S §S 

CO o 

5^' i 



■*eo Ort 
Neo CO -< 



as 



ooc* os-^ -Hco osa 
^ho coco «o*o ■^ oo 



i i 



sg $§ 
sC ^ 



8§ SS S2 S§ 






<S& 



'■a;?^ 



^3 O 



oxi 



J35 9 
.9 



So , 

3 I- J 



3 II 

a a 



39 



-sa 



II 



:2|a.a3a.s3e 



„. a 



..9 a.a 9 a M 



n 



a o tn9 
3 a 03 3 

o 



o >.a 
aii d 



■2a :3a 

=> ►s a 2-- a 2 a 
lalla-ola-a, 

-^5? "3 



18 



03 



r= 3 




218 



CONCENTRATION OF ECONOMIC POWER 



O ^ 



S "tg 'V- 



S I 



B S 





OM 


r- < 


00 


orio 


t~o 


»0 CM 


M<0 




»o 


o 


TO 


o 


00 


CMiO 


«« 


M» 


r>. 




P-r- 


CO 


OI 


•<}<M 


COIN 


CO CM 


(MO 




to 


■^ 




CM 




CMOS 




■^ 


00 


e» 


o 




■^ 


o 






00 


to 


to 




00 




CI 


■* 


to 


00 


CO 




»o 




TO 


o 


TP 




ci" 


^ 


oT 




cm" 


Tt^ 


cm" 




TO- 




o" 


to 


to 


,_r 


•o" 




co" 




cf 


^ 


co" 






CD 


o 








t- 


Ca 




CO 




00 


TO 


OS 


CO 


€^ 




■^ 




CM 


CM 


-!f* 


" 






s 


s 




€/?. 


«9 


«> 




CM 




o 
«» 




w 


^ 






% 




s 


00 
CM- 
JO 


o 


















































o->j< 


t^ 


o> 


O! N 




TO rH 


>OCD 




o 




OS 


CM 








lOO 


00 


g 




r^ ■* 


■^ 


§5 


■*00 


COW 


too 










■* 




o 


NO 




•o 


^>■ 


m 




o 


-*1 




»-* 




OS 




OS 




00 


to 


OS 


CD 


CM 




Oi 




CS 


to 


o 


CO 




rC 


^ 


^ 




o" 


co" 


t^ 




cm" 




os" 


cd" 


^ 


to 


^ 




00 




^ 


^ 


to" 






r^ 


Ci 


c^ 




S 


CO 


00 








u^ 


(3S 




O 






OS 




CD 




I^ 






o 


(N 


ffr 




«/> 


Vi 


«» 




^ 




s 


^ 


6^ 


«(9 


S 




TO 




m 


o 


o 
to" 










,_^ 


" 


















^-v 




,_^ 
















SS? 




00 


CC<5 


CO I^ 


r-l UO 


TO CO 




I^ 


Tf 


00 


(^ 


to 




CM 


•oo 


00 


s 




"^ 


lO 


*cco 


eq to 


CO CM 


T-H CM 






CO 


o 


CO 


00 


CM CM 






t^ 


"** 




00 


s 


M 




t^ 


CO 






»-' 




o 


CM 




00 


TO 




00 




OS 


CD 


CO 


OS 




q" 


^ 


IT"* 




to" 


''S*" 


CO 




f-" 




<N- 


ui" 


^ 


g" 


cm" 




IO- 




^ 


■^ 


to" 








CO 








00 




■^ 




o 


TO 








CS 




o 




I-- 






64 




cS- 




"^ 


<» 


<» 




«« 




«* 


fff 


© 


^ 


g 




SI 




s 


CS 


o 


















































OOi 




■^ 


COIM 


CO —■ 


C- 1^ 


OP— i 






o 










TO 


lOO 


TO 


TO 




t^o 




00 


irai^ 


i-iO 


CO ^ 




<3S 




to 


s 






t^ 


?^M< 




ira 


o 




CO 




I- 


oo 


o 




00 


OS 


o 




00 




TO 


TO 


»— 


CS 




'-' 




OS 


r~ 


to 


i 




cf 


cc 


^ 




^ 


CO 


lO" 




lO" 




o" 


.-r 


UO 


oo" 


OS- 




to" 




^ 


CTs" 


^ 




o 


t^ 






CO 


«» 










to 




t^ 


TO 






o 




CO 


—^ 


00 




Tl< 


oc 






€^ 








^?- 












CO 










CS 


o 


















«* 










^ 


ws 


S 


© 




o^ 




69 










w" 






































CJ" 








t^ 


«<» 




































«e 


«o 










^^^ 
















, 


^_^ 


^^ 


^^ 


^_^ 










" 






OiO 


oc 




lOtr 


T).to 




lO ■* 




r^ 




00 


t^ 


CM 


OSO 


u-jO 


00 


00 




t^(M 


r- 








coo 








I-- 


o 


I^ 








OS 




•O 


lO 


o 


(SI 




to 


•^ 


00 




r~ 


lO 


oo 




lO 




t^ 


lO 


lO 


o 


•>»< 








OS 


TO 




s 




^ 


CO 


M" 




oc" 


co" 


•o" 




r-.* 




tt" 


CO 


o" 


fc 


o" 




^ 




^ 


.■J' 


co" 




00 










m 


C) 




to 




os 


lO 


CM 


lO 


S 




c 




CO 


CM 


oo 








ti 


§ 








C-1 




«« 




TO 


69^ 


to 




t^ 
© 




»» 




m- 


o 


M 


















































oc^ 




CO 




00 


to r-c 


C-1 "O 


OOTO 




00 


O 


1^ 




OS 


OC 


s 


mo 


00 


oo 




t^>o 


(N 


Ol 




J^ 


r-. to 


COlO 








OS 


00 


lO 


.'J' 


o 






lO 


o 




^ 




<x> 


o 








■<t* 


TO 




to 




^ 


CO 


•>»> 


00 


00 




OS 




OS 


TO 


^ 


2 




r-T 


ocT 


IN- 




of 


j-,r 


co" 




CO 




^ 


CM- 


00- 


lo 




.^"^ 




T_r 


to- 


oo" 




l-» 




OJ 




t^ 


«<» 












t'^ 




r- 






t^ 




to 




00 




■* 




m 




«3- 




TO 












TO 


S 


>o 




CM 








CM 










*«. 








«<^ 




»> 






w 


69 




a» 




6^ 




«^ 










o" 


•^ 












































<» 


»» 




































co 


_«• 


















































o c-x 


o 




c*5o; 




•«* f-H 




t^ 






o: 


TO 


■^ 




o to 


lO o 


00 






t-w 


2 


'O 


>OOJ 


OOS 


'^S 


C^ 






to 


CO 










O 




lO 


o 




o 




^ 




OS 




IN 






o 




CM 


Ol 


OS 


CM 


OS 




00 




OS 


OS 


CO 


OS 




in" 


•^ 


<£ 




co" 


^" 


1^ 




to 




co" 


Tf' 


to" 


o- 


CM- 




OS 




^ 


^ 


co" 




oo 


in 






t^ 








TO 






■^ 


CM 


TO 


VO 








o 


o 








o 


CO 

to 


ffi 




Tl5 


<e 


es 




</) 




TO 


s 


® 


S 


CM 




t^ 




»J 


u 


3 




^ 


^ 


o 


s 


m to 


CO « 


tOTO 


oo 




CI 


CO 


OS 


TO 


to 


00 OS 


lOO 


00 


s 




t^ 




to 


lO 00 


CO to 


tCTO 


CM CO 




o 




to 


lO 










lO 


o 


OS 




05 


o 


TO 




OS 


>o 


00 




CO 




t^ 


I> 


00 




TO 




CM 




OS 




o 


Oi 




lO" 


« 


IC 




on" 


g 


to 




Co" 




o" 


f_r 


CO 


CM- 


00 




•*»<" 




^ 


o" 


cf 




o 




o 




1^ 






CO 




t^ 


o 




tO 


CM 




cc 




CD 


o 


CO 




« 


CD 






o 


eo 


TO 








>o 


■^ 


CM 


•<** 


© 












CM 










6^ 








«3- 




^ 




4-5 


€^ 


«» 


«• 










«>» 










t^ 


h-" 






































«- 






««• 


»» 




































<» 


«o 




OTt< 


■^ 


lO 


-^os 


CO CM 


lOCM 


00 o 




00 


cs 


CO 


I^ 


lO 


Oi 


^ 


■*o 


TO 


TO 




t^or 


s 


CO 


lOOS 


CO TO 


CO CM 


CMTO 








OS 


CO 


TO 




CO 




o 




00 


3S 

o; 




«3 


t^ 


CO 




IN 


t^ 


t^ 




*o 




•Tt< 


l— ' 


CD 


TO 










t3S 


CI 






otT 


oT 


^ 




W 


1--" 


-,^ 




lO" 




L-r 


co" 


^ 


kO 


CO- 




o" 




^ 


eo" 


irf" 




to 


a> 


o 






to 






o 




» 




■# 




OS 




s 








«_ 












^ 


€/^ 










OS 


s 


o 




ee 


















«4 








«k 




» 




€/J 


ee 


«J 








f/i 




«^ 












00 




































« 


to" 






«« 






































««• 


_«• 


















































c 


■^ 


o 


M 


N05 




S CO 


S 


t- 






<M 






■^ 


lOCM 


■*o 


TO 






t^ 


CI 










CO 00 


to 




»C 






•^ 






>o 




>o 






i 




00 


*o 


Ol 




t^ 




CO 




TO 




OC 


•— ' 


c^ 


UO 


w 








CO 


o 


CO 




ro^ 


i/f 


?i 




co" 


^ 


oo 




to" 




to- 


cc" 


00 


^ 


TO- 




lo" 




Cl- 


«- 


t-" 








05 




to 


r^ 






o 




rri 


00 


Cl 








■* 




io 




t^ 






o 


o 
ocT 


CO 
•6^ 




«© 


«=- 


c«- 




€^ 




ig 


1^ 


<» 




«* 




«» 




«<5 


o 

m 
<o 


3 




CIM 


05 


>o 


CO CR 


TO O 


S2 


t^ 00 




t^ 


00 


-^ 


00 


t^ 


lO o 


o o 


S 


oc 








>o 


CO 


lOO 


Tt-OS 


C10-. 




-^ 


TO 


TO 




TO 




r^ 






r^ 


to 




o 


05 


CO 




>o 




oo 




r^ 




>ra 


o 




•^ 


00 




f^ 




CM 


tp 


to 


OS 




^ 


■^ 


»o" 




1^ 


TjJ" 


CD" 




^ 




^ 


r^- 


r^ 


cm" 


TO- 




CO 




r^ 


^ 


co- 




CO 




OS 






00 










c-i 


o 


TO 


00 


00 




TO 




to 


o 


co 




o 




^' 




fe 












OS 


00 


CO 


1^ 






CI 




CM 


OS 












c« 








^ 




d^ 




f/i 






Vi 


V^ 




<^ 




'y? 










CO" 


t^' 












































V- 


f^ 




































€» 


^fi- 




oo 






























IC -^ 


too 


N 


CM 




r^ 05 
































o 




lO 


to 




»c 




00 




































r- 


-Jl 


CM 


s 




r-" 
































os" 




^ 


^ 


CO 




































oc 




OS 








<£> 














































































«e 




^ 










O 






































cf 








«6 






































«e 


^ 






















is 




iT3 


;a 
















I 


























"O 


iS 
















[ 
















is 








1 o 





, c3 


'.a 
































1 X 

. 1 cs 








8 
. a 




' y 


i-o 
















; 
















1 -*-> 


i ' C 








1 o 
, X 

i C8 


■ C! 


i 




















1 








2 


! a-. 

;a 

. o 

i.s 


s ;.2 


i ; 


o 




1 * 






.§ 




1 




1 


























1 -^ 




i.s 




















e 








c 


a ' » 


'5 ' 


c 








I +j 






a 




c 










!fl 








ee 


a ;i 


a • 


C! 






1 0^ 

;a 








OD 




(S 










D 








c 


a 


a 


; s 




1 h 


il 

' 0) 

1 a, 






O. 




a 










B 








a 


a ;-a 


a ! 


a 


. u. 


a 

c 

S 


;8 


1 ^ 






a 




a 




li^' 






S 

o 


o o 


1 aj 

;S 

o 


' s 


s 

c 


11 


8 "o 
o :« 


o , - 
^ '-a 

1-1 -tJ ;:^ 


8 

o 


'.S 

o 

ll 


:.a 


'.a 

! lu 

o 






o 
o 




8 

o 


■"5 


IS 


4^ 




11 


O ? G S 


S s 2 
•2 3-S 

sag 


3 a « 


0) 

a 

3 


g. 


PI 




3 =" 




a 


c "£ 


1 
a 


a"S 


aS 


d 
a 
o 




ac 


6i 


a^ 


3 


aa 


ag 


■a 


a £-2 


82 




asa^ 


3 


^1 


"^a 


a 




1 




s 




2; 






> 
5 


Z 


<< E-c< fa S 


<;,e 

3 




iz; 


z 


1 


<i 




-^ 


N 


»■ 


■V 




UJ 


to 


t>^ 




oo' 




o 


o 


d 


cm' 


s 




•*" 




w 


CO 





CONCENTRATION OF ECONOMIC POWER 



219 



ss 



5C« ,-1^ O t^ O 00 *0 CO 



tOOi MM i>. CO t-- CO CD CN| 



CD CO >::»* C^ 



*00>»OCOCDCCO>CD 



t-" 


m 


o 


05 


•■* 


CO 


co" 


o 


o 


m 




^- 




j_^ 






































« 




tX 


€<^ 


5a 










€» 


«/? 








OO 





































































Ol CDO OICD »OCO OO OCO C0*0 "^ O O ^ O CO »0 QOO »0 

M fC CC CD -^ COO t^OO t^OO CD Ol CS O O O CC iO r-f lO ^ O 

iC CD r^ 00 CO ^ '^■<j'cD'<f(Nu:it-cc oo*c 

lo »o' CD CO '"h" lo grf-TcooorooT-rod^ t^O 

t^ w t- .— < CD r- o^Jt-^oo.— 'Ocoo -tpcd 

•^ €«■ CO c^ lo r^ t^Oifi^ee-fift'rHtMo ooi-i 

CO r^ ic d 05 

€^ W^ ^ ^6^ 

gN»0 (T'Tf l^-iO 00-^ 003 CiCD 05 '^J* -^ "* .-. CO OS -^ ,-i 00 

^O CD 05 CO OO CD Oi r^ t- CD <— I 00 0> •-( "^ r^ C^ CO iC --H c5 

■^ OS OS C*4 CO CO WCOOOSC^OCOi-H co»o 

c<f T}^ o" oT CO cs* •"i^oooO'-r^b^oO'?!' c<r^ 

I- "^ C5 CO CD O COiOCOOOCMr-<000 t^co 

TT* e/s- CO c5 -^ r^ oooO€/3'«fi''^i-iCMO coco 

CO i-H o c^ c^ 

CO t^OS !>• O W 1-1 00 C^ OCO 00 OS C^ Tt< 00 lO lO IM ^ lO OS w 

OS cool CO-*** -^os CDW5 t^-^ COO OS (N i-i CO <^^ o "f lor^ co 

t- r- c^ OO 1-1 o osi-i.-«i-ioooooso oo^ 

■^ c<f CO co' wD^'os" c^io'ooco'TtrtCco'o od''-H' 

00 ^O C^ O CO CD OOS'^J^WCqi-HCDTt* t^CD 

■51 <^ CO CO io OO ooos^a^^se-'-Hc^o *c-^ 

CO f-i lO W CM 

Tt* OC^ CDO "^ CO OSOS OCM OSOS ^ -^ CO lO 00 O ■<* lOCO 00 

o cocM coo ■^00 CDO t>. •* COO »o 00 o t^ OO o ca lO O --H 

1-1 CM 00 00 o OS oscoi-iTf<coo>-Hco coo 

id" CO co' o" o o cD^CMco-^'t^t^oT ci't--^ 

00 O CM CM 00 O CM^OrPr-CMCMCOCM OCM 

■^ i-< CO CO »0 C5 ^^^S'^e-fiO^CMi-H lOCD 

CO ' cm" »o" cm cnT 

^ ^^ <» t^ <o - 

CD OOOS OC'CO i-<CO OCM 0*0 OS*^ CM •<*« OS O "^ t* O COt^ CO 

OO CO 00 COO *tJ" lO t- CD t* '— < CDO t~» OS t- rH CO t— t OS »0 OS OS 

i-t CO CM r- CO ■'I* OSiOt^OScO»CC5<-c cot^ 

St^ CD CO i^ »-*" CM'"ococO'^'"os'r-H'in "z;^ 

lO rp ■■et^ O O r-»t-^Tft~^t--COCOCM OCM 

"- f/v Tf* CO CO i-< OcD^€^€«-'-HCO.-< 'rPI— 

CO ^"-i-i^iM lOCMCM 



i^ 












o> t~ 


m 


t^ 


to 


IM 


^ 


to 


o 


t^ CO 


t>- 
































t^ 










o 


















lO 






lo" 






CO 








^ 




^ 


s 


»c 




to 


»~ 






























s^ 










































































































€» 


(/i 




















t^ 




tXlC 






O t^ 


OJQ 


t^ 


o 


^ 


CO 


■* 


00 


cq 


lO to 


to 








«3< 




























•^ 








o 


















o 








^ 


»o" 


;^ 


to 


CO 


t^ 


00 


,_( 


cq 


«o 


'a 


N 
































































































































«« 








«» 


«» 


«^ 


€» 



















< 00 CDb* 



OCO O OO 00 c 
r^ CD t>- O CD c 



1-IO -^O 1-HO 0S»0 OO OSCO CO CO 



f-i CO r* CD t^ cor* 



t-- OS CO OS CD 00 



,-1 »-< €«■ 



r-( rM CO 



CO O OC OS CM i-< t* OSOS OS CD 00 O CO 
O coo cot* COCO CD>-t CDO COO 00 



1-t o o o 

— r ^ r-T CO 



«j 5 



(OO .— (Tfi os>— < oso 

CD CD CO t^ CD OS coco 



t^^ ^ r^ 



CO <-l 



I-I o 



CO CM CM 



>J i' 



si i 1 : 1 i is 

„_ n a ft . . g 

sS a ; a ;| ;| 

•2 o :^ o o ; " ; tz 

S o : ^ o I o ' ; o 



f- ^ •-• ^ ^ . 



■ss 



^5 a 



§30 ' 






0-9 3'' 



i^<) 



m aj fl 

fe a o 3 °'o3 ° 
||sSBsa._ 



^^ 3 -^ 3 



O! C"! CO »o t^ ce 
,-. t^ lo o ^ if 



1-1 c^ OJ 



to 0< OOrH iH 
■* 00 ■* to N 



-H 00 —I 



Eh c5 



•-1 --I c» 



?5 S3 



o o o o 
H !? M W 



f) M M e<i 



'^ 0-<'c3 





cr ' 




"O 

§ 


(-1 


' 




£ ' 


a ; 


3 


C3 ! 

•1.2 


Ul 1 

■9 i 

•3 I 

3 ' 










ft 03 










i"> 


^a 






V 


« ; 


U 


«o 


^ ! 



3 ft3 

a^a 



'3 3 S 



O 



00 05 O rj 



to 


o 
ira" 

60 


i 

OS 




&3 




1 


wo 

o 

to- 
te 




11 

a 

8 ; 

|i 

ii 
12:0 



220 



CONCENTRATION OF ECONOMIC POWER 



2 <» 





a> 


ss 


ss 


5S 


S| 


ss 


t- 


SS 


-=§ 


gs 


lO^-, 


O'* 


^ 


1 


CO 
OS 


« 




CO 


r- 


•>*< 






to 


CO 


"-t 


^I< 


W 


§ 


CO 


00 


CO 


OS 


CD 

CO 


« 


s 


^ 


CO 


s 


00 


00- 


p^* 


pf 


g 


If'' 


t-^ 


^ 


Co" 


r-T 


H 


S 






t^ 


N 




^ 


t 


Ol 


CO 


00 


s 


PI 




o 


«» 




ic' 


't*' 




o» 






t~ 




CO 


OS 


OS 










«» 


«» 




«9 






«» 




so 












c^" 




















<^ 




CO 


8 


CO 


pf 




«^ 










«* 




<e 










a& 


f» 


««■ 




s 


w t* 


w ^ 


■^00 


ss 


Oit- 


t^ 


OJOO 


CO -^ 


Oi-H 


lOCO 


ooo 


CO 


t^ 


to 


t- 




'^gg 


•<(<CO 


CO ^ 


t~ 


CO-* 


to 


t-OS 


1^ 


t^ -H 




■^ 




p» 


o 


lO 


t^ 






CO 


h- 




c^ 


OS 


t^ 




00 


t^ 


l-H 


to 


i 


g 




5 


s 


i 


i 


CO 


i 


2 


OS 

-t»« 


g 


CO- 


Pi- 
co 


t- 


OS 


1 












v^ 




«I9 






«« 


t» 


«» 












N 


























co 


CO 






€» 










y^ 




«> 










«» 


69 


09 


w- 




00 


r^-jt 


Oa-H 


0-* 


CO 00 


ss 


t^ 


OS ■<J' 


coco 


■=&; 


too 


ot^ 


to 


r^ 


■«< 


to 




s 


COCO 


CO-* 


T«< — 


CO-H 




toco 


to 


r-oo 


to 


t^co 


CO 


00 


p» 


to 


^ 




o 


o 




to 


00 


CO 




t^ 


o 


r^ 


CO 




CO 


t- 


CO 


s 


o^ 


oc" 


N 


(^ 


00 


oT 


s 


I^ 


to 


CO 


pf 


g 


to 


^ 


n^ 




s 




(M 


CO 


s 




«0 


lO 


CO 


c^ 


OS 


5 


a 








CO 


** 




CO 




■o 




s 


•^ 


00 












«» 


«» 










«e 














si 
























CO 


CO 


CO 














Mt 




(^ 










»9 


«4 


«<9 


_*? 




OS 


00 CD 


-H -H 


5S 


COCO 


coco 


CO 


coos 


(M CO 


t>-S 


loS" 


o •-< 


T)! 


t^ 


CO 


PI 




»o 


CO to 


•<ti h- 


CO t^ 


coo 




CO->Ji 


oo 




t^M 


t^ 






CO 


CO 


00 


t^ 


t>. 


o 


to 




o 


M 


o 


CO 


OS 


t^ 


CO 


to 


CO 


■* 




^ 


^ 


OS 


o 


00- 


tsT 


00 


(^ 


^ 


co" 


co" 


o> 


(_<' 


^ 


^ 


CO" 


s 


CO 


>* 




M" 


t^ 






s 


«» 


C-1 


(M 




00 


00 










«o 




CO 


s 




r^ 




oo 










t~ 


CO 










«<» 




«/i 






«» 


<o- 














u 
























CO 


-# 
















€/? 




«» 










Vi 


«9 


69 


«» 




kO 


"* 5? 


r-o 


•^ Tj* 


ooo 


CO 00 


CO 


CO to 


CO o 


oco 


cow 


o-o- 


cs 


s 


PJ 


^ 




l>- 




"S 


■^ rH 


CO o 


CO to 


s 


s 


t^CD 


CO 


r-cs 




CO 


s 


cs 


OS 


55 




c^ 


CO 


CO 


*-< 


00 


OS 


OS 


p< 


o 




?2 


^ 


-<iJ" 


^ 


^ 


g 


cf 


^ 


M 


^ 


to 


bC 


t-^ 


^ 


CO 


OS 


o 


Ci 




00 


s 


o 


CO 


OS 


co 


e* 


CO 


OS 


CO 




P4 


CO 








^ 


r- 


Mt 


(M 


00 


to 






«^ 


o 


P) 


to 




CO 




CO 






««• 


«o 




«e 






^ 






•* 


■>(<■ 


■^ 






«» 










(^ 




4^ 




«* 




«9 


«9 


«9 




69 




g 


o>o 


•* <s> 


■* IM 


coco 


-J" to 


f^ 


■o>co 


fqco 


0-* 


•*£' 


ooo 


CO 


■* 


^~ 


CO 




"S 


COCO 


■>»• O 


too 


CO o 


CO 


COCO 


oo 


t^'W 


CO 


t~t^ 




CO 


CD 


OS 


,^ 






T>. 






•<»< 


o 


OS 




CO 


to 


00 


t^ 


p< 


CO 


s 


to 


CO 


of 


CO 


■*- 


00 


cs" 


CO 


^ 


,_J 


CO 


v^ 


CO 


^ 


■^ 


oT 




o> 


OT 


o 


a> 


t^ 




to 


69 


00 


to 


c5 




OS 


PI 


o 


CO 


f» 


«» 


fe 


s 


M 


" 






CO 


w 


CO 


OS 




00 


00 




sC 
























■*- 


to 


■^ 


Pl- 












6<? 


«t 


V 




(/> 




69 


69 


99 


«» 


69 




t^ 


•« CO 


•* t^ 


■<*• to 


ooo 


t^co 


o 


00 OS 


COOS 


OS Tti 


CO© 


OS 00 


CD 


PJ 


OS 


PJ 




05 


CO t^ 


"5 


•♦t- 


toco 


'Og 




CO CC 


00 


CO -^ 




CC o 




CO 






Q 


a> 


■^ 


to 


I-- 


CO 


o 




00 


00 




00 


I-- 


^ 


t>» 


CO 


tfT 


CO 


to 


o? 


o 


05 


■^ 


OS 


e* 


cl 


to 


t-T 


Q 


8 


to" 


g" 




s 


c» 


c^ 




o> 


1^ 






«o 


co 


PI 
















to 


CO 


t^ 


CO 






69 




Tj^ 


tt 


PI 








«» 


«e 




<^ 


























s^" 


















eq 




M 






to 


^ 












€& 


€^ 


«^ 




<« 




«9 


w 


«9 


69 


«» 




r^ 


coco 


N ■* 


oso 


coco 


CO 00 


o> 


CO t^ 


"S 


oos 


CO 00 


O-H 


OS 


s 


to 


•* 




l^ 


coco 


COCO 


■<»• to 


to CC 


CO to 


CO 


COI^ 


I^ c^< 


■«• 


t^ 00 


CO 


o 




1 


CO 






to 




»-< 


00 




o 


00 


CO 


■»< 


to 


t^ 


CM 


CO 


co" 


^ 


o 


rC 


s 


00 


fsT 


N 


CO 


to 


t>r 


00 


o 


■^^ 


o- 


^ 




•« 




to 


OJ 


OJ 


co 


«» 




«» 


o 




g 




OS 










r- 






t- 


CO 




Tf 




•<J< 


CO 




OS 






M 


«» 


«^ 




























CO 


















ci' 




o 






to 


_^' 




w 










«» 


«9 


Vi 




<e 




«9 


^ 


69 


»» 




o 


co^ 


OJCO 


coo 


CC -H 


CO t^ 


t^ 


to 00 


■*T(< 


oco 


1^00 


ooo 


^ 


PI 


00 


■o 




t^ 


CO t* 


cog 


■^f^ 


toco 


CO t^ 


3! 


coco 


■^ 


l^co 




t^rH 


o 


CO 




t- 


OS 


00 


lO 


o 


■* 


■>*> 


00 




OS 


•* 


to 


t^ 


o 


•-H 


o 


o 


00 


t-." 


to 


r-^ 


t-T 


«o 


h-^ 


5 


■^ 


t^ 


rC 


pi" 


CO- 


to- 


co- 




to 


to 






r-i 


'^' 






«» 


o 


s 


00 


s 


os 




Fi 






t^ 


CC 


•* 


op 


K 








■^ 


00 








a* 


^ 


«i» 


«» 


























8 


















N 




pf 


to 


to 


to 


to 












(f^ 


«^ 


♦e 




Vi 




«9 


(^ 


«9 


69 


«9 




Tt* 


oco 


O -H 


CO N 


00 <N 


t*00 


lO 


ooo 


"§ 


ooo 


to to 


oco 


CO 


00 


to 


^ 






coc^ 


coco 


^ CO 


to to 


COOJ 


CO 


CO 00 


t-,CO 


CO 


t^co 


OS 


■^ 




CO 


^* 


I— < 


c» 


^ 


05 


00 


00 


CM 






OS 






t^ 


OS 


CO 


00 


s 


00 


00 


00- 


Tf4 


CD 


co- 


CO* 


i 


lO 


00- 


CO 


cs" 


oT 


TjT 


^ 


OS 






«o 


tO 




to 




s 


^ 


g 


»» 


o 


r^ 


pq 


p> 






CD 








tc 


co 










■^ 


r>. 


CO 








M- 


«» 




«9 


























3 


















«>»' 




M 


to" 


to 


to- 


to 












«» 


«» 


«* 




«» 




«9 


89 


«e 


69 


«• 




i 


00^ 


00 00 


^ i-( 


0-* 


ss 


^ 


00 t^ 


CD 00 


OCO 


to IN 


ooo 


CD 


^^ 


00 


CO 




«•* 


es o 


^3 


S-H 


CO 


COOS 




t^co 


to 




C35 


t^ 


00 




i 


CO 


05 


00 


■^ 


o» 




•"< 


CO 


CO 


o 


CO 


•"f 


t~ 


»-^ 


(N 


^ 


o 


cs 


j^ 


t< 


ei 


^ 


N 


■<*<- 


l> 


pj 


cs 


M-- 


8 


eo" 


s 


CO 


CO 






c^ 


to 


CO 






«A 


(N 


OS 


p> 












(N 


00 


•^ 


«» 


CO 




CO 


M* 


t~ 


CO 








«» 


«» 






























s 


















of 




PJ- 


to- 


to 


to 


to 












<*?■ 


»» 


«^ 




«o 




«=► 


<^ 


«9 


69 


«» 




o> 


«o 


00 


O M 


S§ 


cor^ 


■^ 


CO --1 


CD-X" 


OS CO 


oo 


OS CO 


00 


CM 


oo 


; 


to 


S 


''S 




CO 00 


t^ 


**o8 




COP) 


OS 


CO 


s 


; 


g 


■ i§ 


s 




§ 


SS 


s 


s' 


§5 


S^' 


s 


s' 


i 


t^ 


5 


g 


1 




s 


s 


^ 




J^ 


V 






«» 






■>9< 










«» 


«» 


«» 
























si 










«» 


i» 


s 




sC 




li- 


^ 


^ 


A 


; 
















[ 


i i 






\ i 




■; 






s 1 




^ 1 






























2 ' 




1 i 




li i 








1 


; ! 






I 1 . 




,' 


<6 ' 




3 J 




bO 1 




^ : ; 








; 


; ; 






! !a 






k* 1 




^ 1 




.a ; 


S 1 


^8 : 


at I 


i 


J ! 


; 


i '• 


i '• 


i i 


s its i 


; 




1 IJt 1 
1 O f 




3 ; 






■>s 1 

a > 




11 ! 


; 


a ! 


a ! 


a i' 


S ^-CJ 


■a : 


1 


3 ' 




o I 




"3 ' 


}- 03 ' 


03 1 






03 ' 


08 ' 


* 1 


03 * op 


03 I 




S ; 


j-o • 




o ; 


D< ' 


III 


o< : 


Ck 


'*3 ci, • 


' 


0- I 


a 


ft 


ft T3 


ft 


' 






o 




G- . 


a ! 


a 


..a . 


=30 i 


1 


a : 


a 


a :ij 


'■> 


a 


■ 


9 li ; 


a) 1 




» ; 




?§: 




IS ; 


3 ! 


Iji 


8 i 


1 ii 


8 ;■£ 


8 1 








ij 


sSJ 


a o . 

03 u J 




IS. 


*J o ■ 


-' 1 


O 'i 


O ;3 


o • 


JSJ«J"J 




sl 


3|§ 


s^s 


C9 S O 


ft^§ 




S§s5§g 


l§ 


^ao-s 


9 o ti o 


g§2§ 


o o 

OS 




•S o 


t? fl o j= H o 


03 




boo'j 


8 = 2 


B o 


Sal 


o 


tlf o 




§•3^39 


53 S 


g3E 


S B^ 


|a~ 


1^ 


P 


lag 


saga- 


a-sB 






5 


o 


3^*^ 


o ° c 




^■5- 


1 


O 03 O 




^; <i 


a ;z: ^ 


o 


c 


!s e ^ 


o 




s? S 


CO e§ co' 


?§ g 5 


-* 


V 5 


■* 


^ S 5; 


s? 



CONCENTRATION OF ECONOMIC POWER 



221 



§2 




sag 


s§ 


2S 


CO CC 


gs 


S| 


MCO 




oi Q 


2;g 




o 




sg 


i 


s 


s 


A 


S- 


i 


3 
s 








i 






00 


S 


^; 


































<» 


52 


o 


CC 1-* 

00 


£32 


2^ 

CO 


«» 

s 


ss 

» 


g£J 


?5 


5 


Ss 


§2 

00 


:2S 


"1 


29 




S2 

CO 


00 


«9 


i 


S 


00 




i 


i 






2§ 


S 


^ 


i 




- 


5» 



'S'tD 00 "»<0 "-!« t-IC 



CO ;ci ro CO o 1-1 u5 









(M rt -H 



s s 



oc to « — 






gS5 



COt^ COC« Ot^ N »0 ■'f "-f 



C^CO i-<C 



t~ r-1 



55! S 



U3 C? r-l OS N 
•^ CO iC W3 t-- 



S 3 



r~ -H 



«D O MM rf a --1 p-i CO to 
V lO i-( iO »0 r-<00 ^ 






SS 2 



ooo tO'^f 



? s 



_ OCO OS 00 



"5 r^ 



C tP no 






00 >o 



& s 



.1-1 ceo osoo 



t~00 i-c C 



osM OS r^ woo o»o 



"g 



SS5 °! 



CS i-< 



0«0 t~ to lOrt 

tc r- 1-H 1-1 i-it» 

" M ^ 



i-10> 0550 00 t» 
tew 1-1 — 



to rj «o c 



-< to 



«* rJ 



CO eo 00 to 



1-1 lO CO to tOi-l 

'=^:3 -"§ *S 



^ «» 



t~ eo t~ Tt< i-(io N05 
i>}<N oaeo W>2 i-i-9< 



!r:< « 



^ s 



o>eo 

^S5 



CO 

s 

SI 



ON oseo 
CO «3 ''S n? 



S2 



?5^ 2 



ic c% iO o r^ t^ 



•» jji 



2" S 



S --s 



t'-co e^ 1-) coo »o r^ 



00*0 c«t^ 



Qe<> ooo 



t-1 ^ 



M05 t» Td 

CO 00 tna 



ti CO 1-1 



s s 




222 



CONCENTRATION OF ECONOMIC POWER 





M to 


t^ CO 


^ ■* 


lo -^ coo 


10 


10 10 t~t- —1 CD •*•* 


ss 




CO -H 


Ttl •* 


lO t^ 


iceo o 


IN OS 


10 U3 -tf CO i-H rl CO 


i 


lO 




CO 


O M 


■* 


CO IN OS t^ 


t^ 


o" 


5 


irf" 


s 5" 


i 


S; d 2 II 


s 








CD 


.-1 ^■ 


»9 69 


69 








C/S- 




«» 
























«> 






^' 










O CD 


t^ r^ 


-<«5 


CO ci coo 


0-^ 


>nco Nt^ 1 1 rtt^ 


S^ 




CD 00 


Tj' r^ 


IC t^ 


>oco o 


NO 


in-^ »-tcD II »-( to 


lO 


t~ 


o 


o 


CD TJ. 




CO ■* 1 1 00 


to 


s 


txT 
5 


S 


^' 


K s 


g 


§ d \\ u 


CO 




«e 


CD 


t^ ^ 


c^ 


«« 1 1 


9» 








(» 




«* 
























69 






»» 










in o 


CD-* 


-HO 


>n t^ « o 


ON 


CO ^ CD 00 11 OS 00 


CO to 




CO -H 


TJ4 rH 




iO(M O 


N IN 


■^ CO 1 1 t-^ 


CO 


^ 


CD 


00 




CO ■«< 


CO 














^11 ^' 




s 


s 


O* 


CS 


in" m" 







OS 






CD 


OS ^ 


00 


tP 1 1 






O 


6» 


lg 




SI 


^ 1 I 


»» 




■^t* 


COCO 


1-H t^ 


t~OS N o 


CO 


OS CO lO 01 \ \ t^ M 


Oi^ 




cog 


T)l lO 


»o OS 


lOCO o 


S-* 


■^ r^ t^ II CO 


10 t^ 


CO 




CO 


CD ■* 


OS 


^. i§ ; 1 u 




i 


lo" 


o" 


o" 


m" csT 


tC 




t--" 


t~ 




t^ 


TJH ^ 


00 


■^ 1 J 






** 


^ 


w ««. 


^ 


6^ . . 


69 




cJ 
















e» 






«^ 










S| 


t~ o 


-Ht~ 


CDO INO 


00 CO 


01 CO CO 10 II or* 


•* 




■«< evi 


lOO 






-«»« t^ II (^ 


tot- 








o> 


""n s 


10 


■=1 ig ; 1 ^ 


'^ 1 








s ^" 


co" 


CD I 1 


CS 


IN 


CO 






s ; ; 








«o 




M » 




«9 








6<» 












W 
















e« 






6* 










■*o 


oco 


<350 


i«>o .-<o 


00 00 


CO w II 1 1 00 00 


1-1 ^ 




com 


■* —1 


■*co 






to t^ ,1 ,1 ^co 


to CO 


,— t 


CO 


t^ 


CO 


t- o 


OS 


OS II 11 





2 


co" 


CO 


c^f 


OS o" 


^ 


Os" 1 1 II ^ 


to" 


t^ 


>o 


lO 


lO .I 




to II 11 69 






o 


«9 


s 


CO 69 


y^ 


69 ; 1 11 


«9 




(N" 
















<o 






<«• 










lO rt 


COCO 


rlO 


lO O r-l O 


O-H 


IN OS 11 11 OSOl 


OS CO 




ot- 


■«<00 


>Ort 


to r-. Q 


N CO 




I** OS 


o 


IN 


en 


CO 


00 


r^ 11 11 to 




o> 


Q- 


co" 


o" 


CO O 


Os" 


00" 11 11 i-T 


CO 






-^ 


t^ 1^ 




to II 11 69 


CI 








CD 


cq <^ 


69 11 11 


€^ 1 








«9 












N 
















«« 






69 










•W.CO 


CO-^ 


ss 


lOOO 1 ! 


t* OS 


OS 00 1 1 1 1' "to 


00 CD 




CD 00 


■*fc 


lO OS II 




•^00 11 11 i-l CO 


^CO 






(N 


00 


•a 1 1 


N 


CD 11 11 00 


•«< 


oo" 


co" 


co" 


ca 1 1 


Q- 


I-T 1 1 11 in" 


■<**' 


■^ 


ira 


1^ 




S3 


10 11 11 69 


N 


o 


«^ 


CO 


CO 1 1 


«9 11 11 


69 








»* 




«9 








N 
















6f» 






69 1 1 










S2? 


COOJ 


05 CO 


OOCO 11 


t- -H 


t~ C<1 11 1 1 OS CO 


00 




■* t^ 


■>j<>o 


lO -O" 11 


.-1 CO 


■* CO 11 11 -H 


to-* 


OO 


•o 


05 


CO 




CO 


10 11 11 rt 


ff 


g 


S 


S 


"" 


O 1 1 


co" 

CO 


;s i ; i ; t 


s 




00 








IN 


69 11 11 


^^ 












«9 
























«» 






69 t , 










CD t^ 


00 t^ 


Oi^ 


Sfe i i 


ION 


tO'* 11 11 OOQ 
■^ -^ II II N 


I-l Ml 




CDIN 


•*00 


^s 




10 CO 


t- 


00 


CO 


lO 1 1 


f~* 







g 


oo" 


co" 


■*■ 


co" 1 1 


^ 


s i i ; i i§ 


CO 


-* 




t^ 


r^ 1 1 


■^ 


C^l 






^ 


CD 
6« 


OS 1 1 

«« 1 1 


^ 


^ II 1 . 


«9 




■* o 


t^ OS 


00 -H 


M 00 11 


■<}<lO 


i-i to 11 II 000s 


00 OS 




CO 00 


T(< CO 


•<»<c^ 


lOOJ II 


;5t^ 


•"g 11 11 s 


^s 


to 


t^ 


I> 




lO 1 1 


t» 


t~ 


05 


[^ 


^ 


00 


co" 1 I 


oT 


^ 1 1 1 1 ^ 


^ 


T)< 


CD 


U5 






-^ II II ^ 






t^ 
«© 


«9 


g 


3 1 j 

«» 1 1 


s 




69 




1 1 




00-* 




CO-* 












s 




1-1 OS 






kO 
















05 


; ; 




?5 




i 




; 


























1 1^ 1 1 




11 1 1' 1 l-o 1 1 












1 1 aj ' 1 




1 » 1 1 






gS : 


s i 


J' 


2 :5s 'ii 


1 '^• 


SI g 1 g lt5S 1 


s i 






1 i 


3 ' m 

0) 1^ 


03 'mot ' U. 


a la |a >a | 

8 |8 ;^8 SS 3 
^ !5,„ .TSu^ .la^ :-c 
° : «= ;«° 11::;° ;^ 


s i 




a 


o< ; « 


a ; oD. ;3 


a ^ 


a ; ' 




Si :3 


a ; 


S:| 


a isa ;g 


a : 




8 ; 


w 

wo -- 


8 :^ 


1 






•^ 1 « 


<«-■ 1 ^ «*-! 1 ' 








a o "O o ' 


O '.ti 


'o 'S 


; g 


; 




C3 t.*j P 




t4 J a 


I- jj a I- « 




U aJ. 




. oi a 03 


■° § 




S a « 

■2 3 




I§ 




.ills 


3 ° 


S o !s 

^ a ^ 


33^111 


Soi>.go«Bo„cO'^EoS 


a 




§a 


3 B-S 


3as33'33a.S33-^ 


§8 




1 1 






1 1 





2;<! c«2<^ -rZ^I cc2<jfe 
1 ^ S 5 

CQ Oh CO 


2<i 




s s 


CC 


s 


s s 


§ 


d »H c^ CO 
r- t>. r* t^ 





CONCENTRATION OF ECONOMIC POWER 



223 



e CO 



s 


;:3 


ri 


C 


1^ 


s 


® 


c 










5 





^ 

.« 

^ 



w 



!3 ^ H 





28 


K 


§ 


*s 


*§ 


ss 


?§g 




s 


s 







11 to 


<o 






■ICO 


CO 




•«)< 






e§ 


«- 


1 


co" 


co" 




„- 


rf 




irf- 


cf 


■^ 


S 


S 


^ 


^ 


i 


s 




^ 


s 


§ 




H* 


«9^ 






















OON 


M 


00 


mi-i 


MOO 


8§ 


-le^ 




CM 


^ 


!>. 








o 


00-* 


t~M 


(N-H 




ti 




{- 


U5 


I— ( ^^ 


00 


t>- 




t^ 


i-i -^ 






- 


OS 


•0 


S 


co" 


i^,' 


cJ 


»o" 


rC 


C^ 


»c 




CO 


cm" 


u5" 


s 


00 




g 


^ 


s 









U5 














69 


«» 




^ 








^ 














































ocg 


w 


e-) 


uito 


!8| 


00 rH 


t^ r^ 




u^ 


OS 


5 




t>. 


CD 


00 (^ 


OS OS 


rHl^ 




CO 


io 


tP 


»— t o 


Ol 


C» 


c>» 




« 


00 




■^ 






§ 


^ 


o 


g 


o" 


lO 


0" 


OS* 




iD 


r>r 


to 




1^ 




to 


T)< 


S 


to 




■V 


t^ 









s 




i» 


«» 


ay 






<N 
















«^ 






^ 


^' 


«& 




t^ 


t>. 






















«=• 


Ml 














































2S 


Ol 




IN 00 


SS 


t^-* 


coos 




t^ 


Oi 


1^ 




s 




coco 


OS CO 


l-( t>- 




<N 


00 





CO 


t-H CO 


C^ 




t>- 


■* 


00 






Cft 


m 


s 


00' 


(N- 


ira" 


•^ 


co" 


os" 


■^'" 




C^ 


!<■ 


t^ 


S 


05 


« 




IN 




CO 




00 


C^ 


r>. 




t^ 


(N 




Vi 




«» 




^ 


(^ 










«» 






e» 










S 




I^ 


"(f 






















«^ 


«J 














































°°S 




M 


co^ 


c^t- 


S5S 


•'*' -^ 




C<1 


CO 


^ 






s 


O 


00 t^ 


NO 






s 


U3 


S 


N 


ri 05 


•* 


t~ 




c^ 


-^ 







10 


g 


CO 


o" 


i/s" 


t-^ 


•o 


^ 


rC 




^ 


oT 


CM 




S 


•^ 






«« 




(N 






to 


*o 






00 


«© 






«» 




>*« 


^ 


t^ 








«» 














6*9- 


6?- 




r^ 


^ 






















Vi 


s 


























^^ 












^,^ 


,_^ 


—^ 




ooo 


s 


CC 


rH r~ 


g5S? 


00 oq 






cs 


01 


^ 






CO 


00 to 


OS to 


e-)to 




c^ 


g 


00 


1-H 


f-< -^ 


CD 




CO 


-*" 


OS 






CO 


CM 




co" 


on 


oT 


to' 


»o" 


s 


oo" 




?o^ 


CM- 


iC 


2 


g5 




00 






-^f* 













" 


s 


«* 


«^ 


SI 


v^ 




^ 


««> 






^ 


^" 






















00 IN 


CO 


© 


>ooo 


b* Oi 


coco 


"5 00 




■^ 


to 


Oi 




"£: 






00 00 


"^ 


°s 


" s 




^ 


00 




o 


— 03 


05 


o 


■<»■ 






C4 


t^ 


CO 


2 


CO 

1? 


00 


lO 




cf 

s 


i 


1 




i 








00 00 


o: 


^ 


mo 


ocs 


1^00 

S 


r^ lo 




_ 


^ 


CO 








00 


00 00 


t^^ 


CO CM 




■«!f 


to 


t^ 


3i 


^ s 


^ 


r* 




o 


r- CO 











to 


M 


{J' 


r^ 


^ 


(N 


^ 


o" 


00' 




to 


co" 


>o 




r^ 


c^ 




00 


CO 










"5 


CM 








c^ 


e» 




^ 






00 


!>. 


^ 






in 






w 


ve- 


«» 












cT 
























«» 


«> 


_«&_ 












«» 


«« 


«» 




0C'O5 


1 


s 


ooo 


O5 00 

•006 


il 


So 




to 


8 


tg 


S 


«^ 


- 


■* 


00 


t^ 




CO 




t^ 


00 





sT 


F^ 


s" 


>o- 


iO" 


lo' 







r^ 


>c 


cd" 




as 


<c 


r>. 


CO 








■^ 


to 






CO 




o 


se- 


««• 




c5 







OS 










«9 






«* 


Vi 






«» 






ig 


s 














s 








00« 


^ 


to 


•oco 


COI 


coo 


tO-H 







t~ 


~o 




.lO 


CO 


c^ 


00 CO 


IOC-) 


to 


CM t^ 




^ 


s 




b-. 


—ICO 


05 




00 


OS 




CM 




CM 


w 


Ss 


oo" 


o" 


to" 


CO 


^ 


if^ 


^ 




^ 


3 


»o 




r'" 


■5 


t^ 


to 


>o 




CO 




CM 


o> 




r>. 


U5 




^ 


«l» 


CO 






to 












«« 






«« 


a^ 




^ 


^ 


^^ 




(^ 


OJ 






















<» 


«J 






















00 CO 


o 


00 


OJO 


2g 


CO t~ 


to 00 




^ 


^ 


"~ 




rt N 


00 




q8 


S8 


C^tO 




■^ 


CO 




i 






05 








CO 


•^ 





?c 


fS 


S3 

CO 


OS- 
US 


§- 


^ 


lo" 




■■**" 

to 





s 




US 


t^ 


«& 


(» 


** 


d. 








s 




tC 


oT 






















<« 


«> 






















2;s 


1 




















i 


«» 


i 
























[ 










1 1 <» 

i i-S 




1 a> 
i"0 


la 




















'■O 


18 








1 




; is 






1 1 4) 

: :a 

a ;S 




!§ 


'.9 








1 




i i5 

a 




•2 1 
i 

a i 




1 a> 

;a 


Its 
' p 
1 "^ 






a 






9 ■:2 


a ;•« 


a ; 


a ;fe 


c 




, 


\2 

is 






8 ;_ 


1 b 

;£ 

O 


' a 


o 1 « 

" ' 03 
t*-J - ,^ 

O 102 


8 '■» 
"5 :« 


- 


8 ;p 
"0 ' « 


1 


l_p 
:2 








^■2 

a o 

c 


§ XX! S axj 5 — 


III 


2^1 


1-wS 

oil 

ti 


3 






Sggo 


B| 


3 a« 


=> a s 


p 


T3 


as 

p 


sJas 

3 


a 




o c 
Eh ^ 


^1 




Q 


> 



T3 
P 
c8 


■< 




i-i e< 


CO 


•*■ 


o 


to 


t-^ 


00 




OS 








^< 



224 



CONCENTRATION OF ECONOMIC POWER 





tN. 


w 


coos 


S t^ S ■* 





05 


COOJ 


t~ c^ 


MCO 


CCrt 


l^-* 


11 1-H 


t^ 


osg 


n CD 






R 


coo 


(N 


IM 


CDt~ 


-<t~ 


TCOO 


li t^ 


1-H in 


'"'S 


00 




C0-J3 


o 


CO 


CO 


■* 





IM 


CO 


t^ 





— 101 





-H CO 


1-H T)< 


>10C 


CS 


OS 


'<**' 


oT 


oT 


00 


C^ 


§■ 


oT 


co"" 


co" 


2" 


in 


o" 


CO* 


TC" 


E:f 


^ 






CO 


t~ 


o> 




01 


s 




■5 










C*l 


is 






«^ 


lO 


I^ 






o< 


cc 


«J 


in 


cc 




OS 


CS 








««• 


««» 


u 


«I 


<«■ 




^» 




^ 


«^ 


ss 


sC 


60 


«o 




CO 


CO 


M cs 


ss 


<» 


^ 


CO 


—110 


>oo 


CO t* 


t^o 


t^<^ 


IMO 


t~ 


00 CS 


m « 




o 


S 


CO t^ 


to 


00 


IC 


CO-* 


—1 >o 


TJ-O 


M CM 






CO 


re 


csm 


US 


ffl 


■* 


■«** 





'd* 


<s 


C<l 


-H IM 


00 


^H 1— I 


»-IC3S 


rt t- 


C3S 


es 


00 


i 


us" 


tC 


00 


§ 


CD 


00" 


CO* 


co" 


^ 


T#r 


^ 


in 


OS- 


co" 


CO 





IS 


S 


lO 


g 


g 


CO 


«?• 


CO 





". 


^, 


CO 

CO 






CO 




«^ 


«?• 


«» 


f/i 


co" 


^ 


^3~ 




Vi 


«e 








§1 


<A 


t» 












«« 


«■ 


f/^ 








Jo 


S- 


60 








s 


S 


(NN 


oio 


IM 


t^ 


05 


—1 >o 


■vn 


COIM 


l^ 00 


000 


csoo 


CO 


00 


OS 00 




CO 


CO CO 


'^ S3 


ce 


8 


ffl 


t-00 


^ -^ 


■«> -< 


^ ■* 


-H CO 


^ CO 








^ 


CO 


00 


>o 


t^ 





■* 


«o 


<J! 


th m 


1-H Tfl 


1 


10 


m 


00 


1 


^ 


00 


■^ 


im" 


00" 


^ 


10 


CO* 


co" 


im" 


^ 


^^ 


i 


(^ 


0- 


m" 


s 


g 


s 


R 


g 


s 


C^ 


s 


01 





§ 


m 


§ 


E 


t^ 




«» 




«» 


<^ 










«»» 


«» 










«« 












si 




ic" 






























6^ 


<» 








«o 


«» 


«o 


«o 








g 


^ 


1-1 ■<J< 


050 


CO 


CO 


t~ 


OCO 


lO'l* 


ss 


t-Tfl 


00-* 


^Os 


t- 


OSO 


000 






CO CO 




t^ 


t^ 





t- •>»< 


rH -^ 


»-i in 






t~ 




— iji 


CO 


c^ 


o 


(N 


00 


t~ 


•0 


06 


•* 


-100 


IM 




*-H ^ 


i-lO 


t^ 





CO 


2 


s 


i 


CO 


•o 


1 


8 


2" 


en 
SI 


SI 


-»< 


1^ 




s" 


I 


i 


es 


s 






</> 


^ 












«e 










«« 


s 












ss 


^ 


t* 








«o 


t^ 


«^ 


ti 








s 


to 


CO CO 


2S 


■* 


-^ 


r^ 


-HOO 


<-• 


too 


00-* 


00 -S" 


^00 


CO 


OM 


t-t^ 




s 








S 


CO 


t~r- 


S5co 


TJICO 


— It- 










n CD 


N 




00 


CO 


00 


t^ 


CO 




r-(00 


r» 


t-H ^ 


1-H CS 


*H 





CO 


CO 


2 


«* 




00 


10 


CO 


cT 


t^ 


« 


oT 


(C 


in 


co' 


^ 


co" 


iT 


in" 




O) 

^ 


s 

«» 


§ 


CO 


fc 








8 


CO 


f^ 


§ 


co 












s 


s~ 


^ 










S- 


«o 


s 








^f 


5j 


«•<»< 


o>o 


^ 


^ 


10 


OCT 


IM'W 


10 10 


■«<co 


J:g 


-"=3 


2f 


*s 


•-S 




t^ 


s 


CO CD 


—10 


CO 





ei 


I^IM 




flM 




11 in 


OS 




HOO 






CO 


CO 


(N 


ta 


<N 


05 




t- 




^ ■* 




m 


10 


S 


5 


r^ 


^ 


TlT 


00"" 


cs 


s 


^- 





h-T 


m" 


co" 


m" 


OS- 


OS- 


co" 










00 


CO 


ti 


05 


CA 


M 


oi 






in 


t-H 


Ǥ 


s 


CO 


05 


«o 


«» 


SI 


«l> 







b- 


CO 


^ 


S 






^-^ 






s 


t 


^' 








S 


^ 


S 


SI 








t^ 


o 


-ICO 


gl 


CO 





M 


O) N 


CO 00 


COOS 


00 1^ 


00 CO 


-HIM 


CD 


csoo 


•9<«n 




s? 




"'08 


cq 


IM 




COCO 




^ CN 




rt in 






n CS 


HCS 


Q 


w 




10 







■* 


^~i CO 




i-HCO 


11 in 


C>l 


CO 


00 


i 


s' 


S5 


g 


lO" 


i 


s" 


g- 




s 


^ 


g 


1 


g" 


§ 


g" 


?§ 


** 


^ 


«! 


«^ 




0: 


^__ 


«« 


s 


f/i 







""l 


§1 


3 












T*r 


Tt*" 
















S 
















«^ 


f/i 


6* 








««• 


«^ 


«» 








O) 


S 


■o-co 


050 


c^ 


IM 


10 


IMCO 


t^ T-H 


MCC 


00-* 


000 


n 


^ 


1CS 


mos 




■* 


coo 




10 


s 


CD 


t~CD 


^co 


^ in 


— OS 


—1 m 


-H r~ 


OC 


-HCO 


'-'52 


1 




»o 




•— * 


t^ 


10 




-HOO 


CD 


r-<n 


wO 


11 cs 


^"^ 


1 





N- 


co' 


00 


N 


0" 


^ 





^ 


oT 


Os" 


■*■ 


1 


id 


oT 


^ 


co- 


to 


1^ 


s 




§ 


Cl 


■^ 


i& 


% 


i8 


fe 


8 


8 


CS 

SI 






e» 








s" 


t 


SI 








«^ 


«» 


«e 


S 








00 


r^ 


cow 


00 


w 


^c 


^ 


•*}« pH 


00 IM 


10 OS 


t^OS 


«^oo 


-HCO 


CO 


OS CO 






o 


CM 


(NO 


« 


e>j 


t~ 




^0 


SSe^ 


-I-O 


-10 


11 1^ 


-H CO 








i 




'"' 


"'J' 


CO 


(N 


00 


C^ 






C^ 


1-H "(Jl 


1- CO 


r-1 CS 










q" 


^ 


■«^ 


^!J*" 


co" 


IC 


cJ" 


oT 


V 


cs" 


13*' 


-c" 


CO 


t^" 


3 
S5- 




s 


S 


s 
s 




s 


IM 





lo 





18 


g 


s^ 


s 


8 














co" 


■<1*" 
















c-j- 
















€e^ 


Vi 


ce- 








«» 


«0 


Vi 


(/> 








<e 


lO 


■*i« T-l 


2g 


CO 


CO 


•* 


i-H ^ 


■^s 


— I-H 


00 M 


00 CO 


n CO 





00 CS 








lO 


■=^3 


■^ 


o> 


M 


W 


-'SS 


-H OJ 


1-H 


-H CD 


CS 






Is. 


■^i 


« 


»— 1 


CM 


CO 


(M 





1— ' CO 






»1 CO 


00 


CO 




2 


C^ 


>a 


t^ 


co" 


^ 


o" 


00 


^ 


8 


8 


0^ 


co" 


b^ 


co- 


■»<- 




2 


S 




5g 


s 


05 


s 


te 


^- 


M 


t^ 


in 


CO 










«^ 


<« 










«9 










^ 














SI 


so- 


sc 








«o 


60 


«o 


SI 








"5 


s 


000 


000 


d 


N 


Q 


■<* CV| 


t~« 


1-H CO 


00 OS 


00 CS 


MOs 


CO 


cso 






C$ 




l-H >0 




& 




t^Ol 




■* t~ 


>-i CS 


1-1 


— im 




-H CO 




1 


00 





■O" 


t~ 




w 




<-i IM 


CO 




»H 00 


-hOS 





CS 




"1 


g 


S 


s 


i 


s 


?? 


Os" 


(^ 


s 


0" 


1 


OS 




0" 




W 


«^ 


g 


s 


^ 


t^ 


«» 


E 


eo 


IM 




t- 


^ 


^ 














i?~ 


s" 


s^ 








tft 


««■ 


«o 


1? 












oco 


2i 


Ol 


IM 


in 




CO 1-1 


IMt- 


l-HO 


est;- 


fc^S 


TJ. 


o-a* 















UO 







;5S8 


•*00 


1-H CS 


*-H 


OCC 


8 


n 












t=. 


CO 


CO 




OS 


1-H CO 


1-1 CO 


>i 00 






1 






i 


00 


co" 


sC 






lo" 

5 


3 


8 






i 

S 


i 






i 

.2 ' 




i ' 


(D 1 








^ ■ 


i i 


S ic 


•2 1 


.S I 




i 


1 ; a 
' '.2 


s ; 




C3 ■ 


































a • 


'3 1 






1 


n ' 


5 ! 


1 :§ 


'a i 


C ' 


a ■ 


1 « 


a ' aa 1 




•Xj 1 




a 1 


03 ' 








cS ' .. 


(S I 


03 ' 




0: ' 


03 1 J- 


d 1 




li. 

^ 1 w 




0. ', 


a 1 








a i-w 


0. ; 


c : „ 


0. I 




a • 


b\1 


a 






a ; 


a ; 


\M 




I a; 


a IS 


a ; 


S -2 

8 if 


a :. 


a : 




a 






§ i.. 


1 


I c 




1 C 


8 ,'"3 


8 \-6 


8 ;s 


8 ! 


1 a) 


° i 







"D ; ti) ; 


"S .'•s 


"3 i^ 






1 a> 


•*- 1 > 


° il 


«»-. 1 ^ 






— ' ca 


1 t> 


^ . © 






£ :-9 


1 < . 


1 w 




■ Q.O ;-g 


° :'S 


;s 

ail 
3 a £ 


1 


-^ 


' a 


2ja 
ago 


i 




few > 

11! 


^1 


1-4J 


t.jj 




^1 

S2 


*J X 


t-i *^ 0" 


t.*j > 


t-*^ K 




i-jj a 




fH^J 




JOS'" 

a §"2 


a ■= H 


li 




5c« 

el's 
3 a s 


a°«a5s 


a|'gaq^§-g 


ag 




S « 


a^ 


3a t 


S Q ^ 

c 


a ® 


Se^ 


sag 


385 


3S 5 


H 


3B° 


3a 




<i 








"^^ 
^ 


Z<1* 





^"^8 





> 
a 

M 


^<2 






2;<: 




&^ 


PLi 





H 


H 


m 





Is 


■< 


E-i 


H 


;z; 


m 






i-i es 


« 


•^ 


10 


cc 


t* 


oc 


o» 





^• 


8 


en 


■* 


in 


CO 












»-» 










OJ 


CS 


CS 


CS 


CS 


CS 





CONCENTRATION OF ECONOMIC POWER 



a s? 



ss § s 

52 oT o" 

00 « Q 

<o t- « 

to of n 

€«■ <« «^ 



N") Tj<00 t^f" 

CC t^ *-<0 F-l CD 

CO »-) lO t-H o 



SR 



g SI 



225 



;s £ s §!§ a 



<050 00t)< N 0000 
C^IO -^t^ ^ OS CM 



S S8S 



to-* 


g 


§ 


i 


CM 


r-T 



<C O C^ f-4 COO) C^iO CO ^ 



CD WU3 -^ h- 05 CT> to 



O CO CO 

— to CO 

rH CD 



lO (^ b* ^ .-* Tj* CD O CO 00 O rt 
O OOCO 0000 COCO .-lO rt^ CO 



r-* lO 



2 « 



i E i 









s 


d 


6e 


CO 










S 


a> 


CM 










OM 


«« 


— t- 


CO 


OS 00 


^ 


^ 


1--S 


■ r-- 


- ~, 


-" ^ 




_ 






as OS 


^s 








''ffi 


















































1-1 to 






o 


rH OS 


l^ 




1/^ 


cs 


m" 




CO 




o 


OJ 








?? 




^ 


r^ 






«■ 


«l 




to 


&i 


■* 




































































































^ 


















































«» 


«« 










0>-H 


(NM 


rtOS 


53 


00 OS 


=2 


■»** 


-^ CM 


TJH t^ 


t^Os 


CM to 


00 to 




2S 


"9 














^'^ 










®9 




;:3Sm 


































<-im 




1-H CO 


^ 


cn 


n 


cT 


00 


r-T 


t^r 


CM 


51 


g 


Tj< 


^ 


^ 


a 


^ 




























8 














«i 




lO 




'"' 




iA 


«^ 


S 


fe 


t^ 






«« 












^ 


^ 


4;^ 


Si 










«» 


«<9 


*» 










o>m 


•lO 


ajr~ 


iO 


gs 


CM 


t- 


S5J 


CM to 


rt T)< 


tc>o 


00 ■* 


s 


00 00 


OiW 




co^ 
















*s 


















«s 




■* 












rH CO 




»o 


I— t to 




r- to 


00 


rt ■^ 


g 


oo" 


>o" 


i 


3! 


g 


o 


1 


OS 


S 


S5 


i 


p 


s 




OS* 


8 


g 










































Si 


1^ 


4)^ 


'^ 










f» 


«» 


«» 












2S 






toco 


OS 




88| 


00 CM 
*?M 


-.>o 






M 








^s 


ss 














tog 














o> 


t^ 




to 


CO 






1--OS 


CM 


s 


t-iu5 




»H r-i 


S 




1 




OS 
00 


s 


^ 


S 


§ 


s 


to 




n 


s 


CM- 


cT 


S 












































^ 




^ 
















































«» 




«» 




W 


t^-< 


to OS 


lO -H 


CO 


!€S 


CO 


^ 


S^ 


SP 


OS t^ 


^^ 


23; 


t- 




CMh- 


^-to 


^f8 


t*CN 










g 




U.Jg 












Tj* 






c 


OS 








-i-<j< 


-MOO 


co 




>o 




OS 


t-i O 


s 


t 


s 




to 


00 
00 


^ 


o 

i 




g 


« 


s 


§ 


§ 


S- 


CM 


S 


^ 










































^ 


<« 


Si 


s 










M^ 


^ 


^ 




^ 




» 



><5 ■>i<t 

SO t-l - 



O0O3 c>>io t~t~ eoco 
T-H lO CO i-t CO to 



CM r-l 



rH >-c CM 



»— t 00 OS r* ^ 



St- lOI 
(CM r-cl 



to 1-hCM t-lO 



rHOO CO r-li 



r^ rH to 



J:; Sm 2 



i: 5 



.H rH CM 



OOrH CM OOCM 



8 J= 



00 iM 00 CD 



■^ CD t^ 00 lO 



' uS ^ r* i-H 55 



jr^ t-N *Oc 

CO i-H O ' 



8 s 



toio CM E-r- 



OOCM OOCO ooc 



C^CO 00 OOCO rH to t^ CO t- 1- t>-o 



OCM CM 



^ to to to «300 



00 to:3; 
S 2S 



^ 2 § 
t~ O CO 

rH* CO CO" 



«» « 




S S S 



226 



CONCENTRATION OF ECONOMIC POWER 







s 




t~ 


t~ 


CO 


c^ 


CO 


lOOJ 


00 Ol 


»r 


Tf 


ooo 


Tj* r- 


IO I-I 


t~ O 




CM CD 


CO 00 











« 


g 


05 


to Tj* 


IM IO 


O IO 


I^ 






o 


o 




w c^l 




t^ 


'^ 


r- Si 


too 


« 




o 




n 


o 




CD 


CO 


^o 




IN 




o 




— (C 


w to 








c^ 


r- 




w" 




ui 


?5 


to" 




V 


m" 


to" 




lO" 




of 


Cf 


-^f" 


co" 








CO -1<* 


CO 










a> 


00 






</i 


■^ 




CO 






«)» 


c^ 










to h- 




"^ 








00 


C3S 






€/& 








«» 




«I9 




«? 


i 








O-H 


S 






»» 




«» 


«« 








«* 






























to 




t^ 


•<)' 


o 


lO -1 


t^ -rt* 


■oo 


ir 


■^ 




o 


lOlO 


wo 


us CO 




^ 


b- 


kOO 


Sio 










« 


■»l 


-* 


to to 




Ort 


t> 




So 


IO 








;D»0 




tn 




g 




o 


t^ 


1^ 




CD 


m 


rt o 




(^ 




—I 


00 


wto 


»— 1 I— t 








mS 




1 






o" 


oT 


r-T 




co" 


irT 


o 




to" 




o" 


m" 


co" 


TtT 








c*ico 


^ 










r^ 






s 


^ 


■* 




■^ 




«» 


</» 


r^ 


O 








CO »o 










'^ 




C<( 






ig 












»» 










10 w 








■^ 


















m 










^9 








V^^/i- 


6» 






<e 




s' 


■^ 
w 


«^ 






































~cT 


















































•* 






IN>0 


"5 O 


10-* 


to t^ 




^ 


t~-H 


e>i ■* 


r>-Tt< 




Oi Oi 


10 r* 


w -^ 






S 




t-. 


M 




too 


05 


o^ 


t^t- 


c5eo 






,-HlC 




M* CD 


10 00 


t-S 


"^ 




•" 




t^ 


•^ 


^-* 




t^ 




.-1 >o 




•>*< 




to 


ca 


rtOO 


1-H t^ 










s 




05 




lO" 


to" 


TjT 




to" 


(>»" 


fc 




^ 




•<*r 


co" 


TjT 


cs 








cfo" 


oT 




to 




S5 


t^ 


00 






«» 


o 




>*< 




«© 


^ 


00 


CO 








to 


tc 












o> 








1^ 






















CI C] 


c) 






•* 
















«» 




eS 










<^ 








«?-€^ 


<^ 






«e 




€«■ 


s 


s" 






































Tj* 














































o 




00 


°s 


t^ 


oc 


-* 


CO to 


coco 




t^ to 




INIO 


CDO 






t* 


800 


t-o 






■«j* 






iC 




So 




ooo 


00 c^ 








— IIO 


I-" CD 




CO 00 


too 


« 




s? 




to 


o 


•— ' 




o 


M 






■^ 




00 




•-ITJ' 


^Oi 








CO 




a> 






ft 


M 


lO" 




(N 


M" 


(N 




o" 




:c 




^ 


oT 








co'in" 


10" 








as 








■* 


«> 


to 




CO 




<^ 




t^ 










•«* 1^ 


^t< 














■^ 




a» 




lO 












C^ 


«e^ 








— I CO 


?•) 






s" 




^ 




s" 








«» 




s 


















«5»? 


«o 






¥ 




o 


g 


r^ 


to 00 


CO^ 


(MCO 


c 


00 


t^ 


i 




$s 


O 00 




O CO 


to 10 


000 






N 








>o 


to 00 


IN 


o to 


oc 

















■S- CO 


too 


N 




S 




IC 


-^ 


o 




•-* 


o 


^to 




t^ 








Sio 


r^ib 








or- 




s 






:« 


^ 


lO 




co- 


co" 


•o" 




o" 




00 




to" 


CI 








tc'r-' 


lO" 








05 


CM 






co 


«» 






to 








to 


r^ 










IN 










t~ 


CD 


c^ 




</i- 








»-H 








c^ 


ee 








«^o 


e<i 






>o 




















e^ 




















«« 






«o 




SI 


■^ 
«0^ 


s 






























<yj_ 








"W 




^ 


Tf 


^ 




o 


coo 


coo 


o t^ 


r^ t^ 




CVJ O 


CC 00 




lO CO 


■^ IN 


00 






o 






t^ 


O) 


t^ M 




OlO 


00-* 




■* 




oS 


olo 




CM03 


St~ 


top- 












t-- 






o 


o 


—It^ 




■o 




Cvi 




rHlO 










coo 





i 




S2 






ec 


oc" 






t>-" 


N" 




t^ 








I^ 


CO 








o"w" 






o 






t» 




i 


«^ 


00 




o 




m- 




to 


g 








CO to 
T-i r— 


s 






s" 




^ 


si 


s 








«» 




«» 


















^►e^ 


«* 






"^ 




95 


o 


Tj* 


Tf 


Tt< 


to r-H 


r^ ^ 




^ 


^ 


o 




IS 


CM CO 




.-I 


b* 


c^ t- 


m -^ 










to 


8 


■* 


t~o 


t^ 


oeo 


oc 






CO 




i-H Ol 




■^ t^ 


05CO 


t-iN 


o 




^" 




•— ' 


00 




CM 


o 


i-i Tj* 




»o 




-^ 






-HCO 








•<1<IO 


■* 








of 


ef 


w- 




os" 


00 


Oi 




^ 




tcT 




rH*" 


CD 








t— "r>r 


s 






to 




CO 


•* 


lO 






«l» 


•^ 








€^ 




il 










oco 










CO 




to 












cs 
















CO 10 








<S 












«» 








^ 










^■ 








«»^« 


€e- 






49 




£C 


lg 


s 








«^ 






























"S 




r^ 


«. 


^ 


>oo» 


toon 


to -^ 


toco 


00 r^ 




r^ CO 


Tt*0 




CM 


S 


•*o 


■o- 






CO 




9S 




>o 


«^ 


•^ 


■o 


O 00 


«>o 




to 




o o 


-H Tt< 




OS 


■S' CO 


t~tD 


S 




_r 




TJH 


OS 


la 




00 


05 


r-O 




00 








--00 


^ 00 








too 


CO 


05 




ft 




■^'" 


CO 


o" 




fh" 


»o" 


to" 




o" 




^ 




oo" 


oT 








oo'c^" 


^ 






O 




"5 








Oi 


«e 


lO 








6^ 




t-» 


«/?■ 








COO 








5S 




to 


»o 


00 




^ 




Tt* 




?3 








(^ 








co»? 


^ 






««■ 






lg 


g: 








ee- 






















v^ 








"Ic" 




o 


to 


•* 


00 00 


Tjl r-, 


t^ ^ 


CO 00 


>o 


to 




ooo 


CM CD 




CM CD 


000 


■0>C» 






CO 






s 


?3 


toco 


o 


o t^ 


ooo 








OOI 


,-t CD 




00 CO 


1^ 


t~e« 


s 




o* 




■^ 




CM 


o 


-HCO 




00 




to 




-ICO 


^O 








00 to 


1^ 


S 








^" 




o 




CM* 


IO 










Cfl" 




o" 


CD*" 








cfeo 














t^ 






»» 







s 








r^ 










010 












■^ 


iC 


to 














^ 




€«• 










t- w 








15 












^ 








«^ 










€^ 








(^(fi 








69^ 




E 


si 


69 








a* 






























'W 




2? 


■* 


M- 


in 


S 


■^ o 


t^ to 


CON 


•o ot 




1^ •# 


CM CD 




CI 


Eg 


IN 


100 










°2 




to 


t~ 




o to 


ooo 




:8 




Ot)< 






CO 


010 


t-co 


t^ 








»c 




t^ 












to 






wo 


f-«00 








OCO 


to 






S 




■n 


« 


«■ 




■* 


CO 


o" 








c^" 






CD 








to"— ^ 


oc" 


2 




CO 




S 


to 


CA 






•* 


CO 




^ 




«» 














100 












o 




CO 








o 




















■B- CO 


co 






lO 




















«» 










69^ 








t/r-j^ 


^ 






a?^ 




S* 


<» 


^ 








«* 






























o 




°S 


-)> 


to 


t>- Tj- 


^ c^ 


os*o 


toco 


IO lO 




lOlO 


O r-- 




r- 


~^ 


CO to 


10 to 
t~o 






S 




wo 




N 


tOP) 




CO 


ooo 




to 




OW 


-=^00 






■«< 


C?J 






« 




■^ 




o 




CO 




—100 




•* 




£s 




— 1-* 


f-ciO 








0010 


•o 


s 




S 




'4 


ci 


to" 




^'■ 


^ 


■^" 




in" 




€^ 




tD 


cT 








■— "rC 


g- 








lO 


to 


CO 






«» 






8 








t>- 


« 








10 








»o 




00 


o 


o 


















»» 






































»» 










«> 








6^^ 








•o 




lO 




to 






































«» 




«J 


€« 


9» 








«« 






























to 




o 


« 


































^ Tf 










00 


to 


































t--. r-t 


Ui 




Oi 




00 







































s 




•"J*" 




oT 


TJ*" 


































10" 




o 




to 


M 


































CO 






m 




to 


oc 


































^ 






^ 




u 


^" 










. ) 
























€/3^ 






i 






1 c 
i2 










i ii? 

1 1 t^ 

1 1 a> 






























, 


^ 




is 
















,•« 






















[ 


a, ' 

u > 

« 1 


I O ; 


1 




2 :- 


. ■ ft 


K 




i 


; £ 


2 il 


s i 


(1) 1 


i 








S : 






|c 




io 




c 






a ;a 


'E 


:| 


'a 


a '> 


a ' 


a 








a ' 








lU 




ITS 




03 


'M 


« ' !5 


rt 


OJ 


oj 1 .. 


CO • ;,• 


03 








0) ' 






[ 


c 




C 




O 


S- :« 
S ;.S 


c 


O. 


. t-, 


o- ;^ 


ft It) 


^ ; % 
8^8 


ft 








0. 








|i 


' OS 




s 


'-C 


a 


' o 


a 


a :•§ 


a ;B 


a 








a ; 








! u^ 


:•« 




O 




c :z. 


O w 


c 


'■c 


o 


o ; „ 


° £J 


o 




g 


' 


; 








1 


1 o 


;1 


1 Jjj 


o 


" ; o 


o , 3 


^ 


' a 


o 


' & 


o I <p 


u , 3 


" ;.s 


w 


o' 


, 








; ^ 








«« 1 j2 




, « 




■.g 
ia 




«_ .-o 






> 




>-~ ;/ 










S 
•J 




1 c 


o 




o ' n 


O 1 


o 


o 


o I S 


O ■ QJ 


O i'^ 


o 








• 






^ 


1^ 


ll 
0& 




w 


Is 


t. *j ° 


t-^P 


1m 


i-i 


L^ 


t- -*^ "^ 


t^^^X! 


U. 4^ « 


t^ 


ti 


03 • 


Hi 


L- -1^ 






c 

§ 


> 
a 


O -' 




umbe 
moun 
lensat 
umbe 
moun 
paid c 




X3 

E 


OJ n o 
B c o 


lis 


ao£? 




£12: § 






o 


p 


E£ 


B-^ 


B ii 


— 




e-s 


3 


sa 


aai 


§02 


3 




a 


a 


5a 




-<-5 


■<'5i«(; ^ 


-^1 


^ 


<)S 


Z<'g 


^-^n 


^-^t 




^<i3 


^<t 


:z; 




< 


^< 




a; 




o 


as "" 


o 








o 


to 




C3 




cc 


o 


o 










ca 






^: 


Eh 


E- 


O 


« 




(5 


O 


« 




o 




E- 


z 


h 


m 








« 






w 


to 


t- 


00 


o> 




s 


_^ 


IN 




co' 




^ 


lO' 


to* 


t-^ 








00' 






^ 


^ 


•* 


fp 


lO 




lO 






lO 




s 


IO 


IO 


lO 








10 





CONCENTRATION OF ECONOMIC POWER 



227 



s§ 


t^ 00 


= 00 


M<tO 


-<T(< 


^ >o 


— 1 IN 


to 00 


« — (N r-^ 


to 00 


coco 


to CO 


■'?' i^ 


IN OS 


M' OS 


CO to 


coco 


coco 


IOU5 


.-< ■«*« 


Olt^ 


'S'-H 


t--(N 


-ICO 


cqr^ 


00 Ml 


iNr-. 


to 00 


(N b- 


oS 








o 


I^ 


^^ 


CO 


CO 


t~ 


CO 


o 






s 


00 


— IIO 


ttf 


CD 


CO 


co" 


r^ 


oi 


t^ 


.^ 


(N 


oo" 


oT 


o" 


If* 


■^ 


CO 


lO 




r- 


•^ 




o> 


<N 




•«t* 




•«p 


c« 


lO 


a& 


CO 


&& 




CO 


co 






>o 


7^ 




•* 


5< 


N 




«^ 




t^ 




«^ 


(» 


«? 


«» 




«0^ 




^ 


«e 


««^ 


&» 


<e^ 












t^-H 


E;S 


0<J^ 


toco 


—lOJ 


cot~ 


coo 


-«<o 


-4 CD 


ON 


moo 


•"*! OS 


— OS 




CO c^ 


CO h- 


lOt^ 






■ooo 




05C0 


■#co 


i^ira 




IN«0 


00 io 


(NCO 




c^SJ 


oS 


o 


o 


^ 


c^ 


-^ 


rH ^ 


o 


CO 


OS 


—1 


CO 




to 




OS 




^ 


^ 


^ 


IN 


<N 


^ 


00 


00 


«et<" 


(3 


to 


;_r 


S 




<N 


-^ 


s 






Tj* 


IN 


to 






lO 










«4 




«l 




€^ 


lO 




N 


5 






c^ 


f'^ 










«* 


€*> 






t 


m 


«<» 


«e 


(fi 


»» 




















«G 






















ot- 


t^co 


CO CO 


O-H 


— lO 


tOT)< 


CO 00 


lOCM 


osr^ 


oto 


in CO 


COOS 


OS — 




00 C<l 


CO Tj> 


coai 


COtC 


CO — 


■*o 




— 05 


0>(ti 


■<*' r^ 


too 


— 1 -wtl 


(N— 1 


xob 


— 00 




So 


oS 


to 


OS 


to 


1^ 


oc 


—.CO 




o 


•^ 


OS 


to 




o 




CO 


— CO 


m" 


CO 


o 


CO 


ir? 


^ 


Tt^ 


Os" 


in 


^ 


s 


^ 


1? 




^ 


o 






F- 


s 


c 


to 


M 








>o 




^& 


s? 


N 




■<t< 


U5 


CO 


(N 


■*** 


CO 


c<« 


s 


«=► 








Vi 




€^ 








«p- 


«<J 


«« 


«? 




















































ea 


<^ 






















1^00 


1^ OJ 


ICOJ 


ooo 


O CO 


toio 


050 


to— 1 


— — 


-1 —1 


3" CO 


tot~ 


00—1 




OSt~ 


OSOI 


lOlO 


CO to 


co>n 


co-# 


lO ■«** 


—c CO 


•*t^ 


t^ IC 


rt x)l 


04 OS 


00 -^ 


-^ 






OS — 




to 




C-4 


o 


.-H to 




Cs 


•— ' 


t~ 




00 


«» 




OS 


OS 


o" 


o" 


t~-" 


b-T 


to" 


tC 


o" 


to" 


CO 


q" 


^ 


^ 




in" 


iC 


lO 




t^ 


CO 


CO 




M 


■^ 


OS 


CO 


00 


to 






<^ 






tfi 


■^ 
&& 


«J 


•o 


t 


s 


^ 


s 


s 


SI 


«.9 








«» 


lOt^ 


t~'0 


— —1 


CO to 


0> lO 


^ h- 


CO 00 


«-, 


-l(N 


cooe 


lO lO 


CMO 






00 CO 


— — 


lO»C 




CO 00 


■^-oo 


■<f u: 


r-< O 


o> >o 


■* to 


t-CJ 


— to 


IN -< 


00 to 






— r~ 


OS -^l* 


o 


»c 


00 


o 








00 




to 










•o 


00 


CD 


•« 


oo" 


co' 


tri 


00 


V 


tn 


I^ 


lO 


Ol 


IC 






in" 


OS 




■^ 


eo 


Tf 




^ 


o 


•rK 


(N 


CO 


OS 


lO 






«^ 


f» 


r^ 


5^ 


M* 


^ 




« 


■^ 


in 


c^ 




(/> 










a^ 


«» 








«« 


»? 


€« 


<* 






















«? 


^ 






















i^-< 


O 05 


1-H t^ 


■n* w 


o o 


OtO 


>o ira 


to lO 


O'W 


OSIO 


to OS 


t~0! 






00 OS 


OStJ. 


ira to 


-^00 


CO 00 


■*co 


lOCO 




OS to 


■* CO 


1^(N 


o 


IN lO 


I^ —1 






— lOO 


t^ to 


■* 




t^ 


CO 


o 


wco 


■^ 


lO 


to 


■<* 


Ol 


OS 






00 


b* 


r^ 


(s^ 


^"^ 


■^ 


o 


^ 


s" 


^ 


t^ 


■<)<■ 


t-" 


lO 






CO 


^ 


00 


rt* 


CO 


to 


M< 






O 


t^ 


o 








«© 




N 
«> 




»» 


»» 


lO 




«? 


s 


•o 


«• 


^ 










«© 


04 -^ 


Oi O 


S5SS 


00 OS 


— N 


CD t^ 


■*co 


t^o 


— O 


""n 


1^ w 


ooo 






S5§ 


OS OS 


to to 


c^^ 


■>*<■# 


•OOO 


^^ 


o>co 


■«<os 


t-co 




IN to 


00-* 






b-O 


•^ 


Tf< 


oo 




M 




■a" 


t^ 


to 


c^ 


CO 


CO 






GO 


^ 


»ri~ 


00 


C^ 


o 


l^ 


00 


•o" 


CO 


o" 


,_r 


1)< 


os" 






^" 


•*" 


M 






?i 






o 


i 


to 


TI< 


•o 


to 








05 


CO 






to 




OJ 


CO 


C-J 


■* 


«^ 








€ft 


«e 


e^ 










«e 


«^ 


«^ 


^ 




















s 


t 






















38 


CO c*^ 


cOO> 


t^ Oi 


CI OS 


CD -H 


to OS 


to 00 


N ■* 


OSO 


sss 


t^T)< 






c3S 


in^ 


cc cc 


?^00 


TCft 


^£ 


-Ht^ 


cn>o 


■<J —1 


l^t^ 




00 to 






oog 


CO 


t- 


00 


o> 




r-l ^ 


o 


CO 




o 


CO 


rt< 






^ 


CO 


^ 


t--r 


o 


CO 


^ 


CO 


q^ 


I^ 


t-" 


(C 


i-h' 


00 






"if 


O 


00 


Ol 


o 


t^ 










OO 


s; 


t^ 








6©^ 




^ 


s 


o 
€*^ 


«» 


s 




«9 


i 


ss 


^ 


s 










</^ 


IC o 


CO c^ 


CD W 


TT W 


•* C<l 


t^ lO 


IN r^ 


52 


OiO 


*"* s 


lOiO 


os>o 






2?3 


KS2 


to*o 


ect-- 


C^ QO 


?co 


's 




OS to 


I- 00 


c^o 


ooo 






»« 




o 


lO 






«-H 00 


00 


»o 


Oi 


o 


■^ 


»o 






^ 


b- 


oo" 


c^ 


c-T 


oT 


d 


CO 


(N- 


lO 


N." 


ef 


■^ 


00 






ffl 


— " 


















to 


«> 










^ 












m 


00 




CO 






It 










«^ 


«> 


^ 


€^ 




S 


si 


ffi 


Vi 


«o 




€«■ 












eo-< 


"1 


-S 


^2 




l^CO 

fHOO 


z% 


— t OS 


Sos 


'^i 


^S 


^1 






C<> lO 


lO — 


co" 


•^ 


» 


ei" 


r- 


00" 


n" 


^ 


e^" 


■y 


r^ 


o 






eg 


T)f 


f^ 




M- 


'0, 


s 


s 




i 


o 


«o 


6/? 


e/s- 






s 










« 


sC 






















-Hrt 


r* cc 


»o t^ 


00 (N 


0> rt 


1^ lO 


T)<10 


to t^ 


■* ™ 


— lO 


OS 00 


-(«5 






22S 


gg 


•"S 


ec(N 


"S 


cog 


coc 


— to 
■I o 


C3Srt 


coos 

CO 


to CO 
CO 


s 


— g 


00 00 






r-i 04 


g- 


CD 


to" 


to 


2f '"" 


I^ 


s 


» 


Vi 


§ 


g" 






5 


os" 


^ 


5^ 


«fr 


» 


'^ 


>o 


S 


21 


Sl- 




s 


«0- 
















s 


si 






















0> C-) 


CO t~- 


to 00 


02 "5 








CJ <N 






£2S? 












""S 


cog 


C^ CO 


cog 








"J2 






® 










' ,.''' 


^ 


CO 


to 


tH 








.-H* 






^ 












Ti< 


t- 

^ 


r» 


^ 








5 






CO 












^ 


m 


«» 










f^ 






** 












i 


i 

a 


til 

Hi 

5° ■ 


i \ 

03 ' 


'3 

03 

c 




1 

;^ a i 


ft •; 




"a ' 

03 ' 

a ; 


W TO ' 


-2g : 
■o o ; 


i 

a i 


...i 

■a a 

a 03 


« O ; 


■o ft 

«a 


J 

So 


,a 

; o 
•a o 


a ; 

o 
o 1 

"o ■ 


6 
8 

O 


g.a ; 

-8 i 

"So ': 


2a ; 


w 

"o ; 


!iit 

•SO . o 


a ; 

o ; 

"o i 


§0 ; 
^8 ; 

■So \ 


1"^ 


30 

-o o 


•sii 

o 


Us 

III 

c 


Pi 

Q ^ C 


§ 


n 

a 

3 

CO 


III 

3 
pa 


03 iM +J 
03 


a t. J 

03 «p 

iai 
Saa 


11 

a 2 

g 


fti- J i,*J 

4|i:|i 

S o 

<1 PQ 


o 


?5a 

o 


■O t.« 

■§!§ 

sag 
saa 


a; !_ 4. 

ill 

PLI 


.ail 

0! 
TO 


"■: 0^ a 

«ai • 

*" 3 

o 


g 


S 


S 


S 


s 


s 


s 


g £ 




2 


OS 


o 


t' 




ro 



259845 — 40— No. 15- 



-16 



228 



CONCENTRATION OF ECONOMIC POWER 



3 O 



•r^ «U M 







t^ o 


c^ 


^ 


OiOO 


^ r^ 


lOO 


o>o 


lO 


t^ ■<»< 


N 


o 


t~r-l 


lop 


00 


00 


o» 






Sot 






t-t ai 


eqto 


<NO> 


•-iC^ 


•<J< 


■* lO 


00 


CO 


H 




t- 




o» 






■<** 


f-t 


o 




o 


t^ 


ai 


o 


oo CI 


t^ 


p 


d 


^ 


f^ 


»~' 


CO 


CO 




Q 


(N 


(^ 


t^ 


oc 


^ 


co" 


t-T 


05 0» 


^ 


S 


s 


oT 


^ 


d 


'^ 










CO 








Tf 




O) o 


00 


CO 


s 


to 




03 






Ci 


</» 


^ 


s 




Ifi 


N 












^ 


o 
















«* 




6^ 


e* vt 


6e- 




««■ 


*9 














































«> 


«» 




























<^ 






t^oo 


lO 


;-, 


,-1 -1 


t^co 


CO-^ 


to 00 


„ 


■o< ^ 


_, 


(N 


OOM 


WO 


rf 


^ 


t^ 






mS 


§ 


S 


"g 


'"'o 


"S 


o 


CO 


CO o 


00 


CO 




s 


3: 


s 


00 


s 




CD 


t>r 


gs 


CO 


cf 


§ 


s 


oT 


s ?" 


00 


^ 


c<r 


lO 


ci" 


r^ 


d' 


OS 












r^ 




•* 


69 


00 


tn 




■^ 


CO 








!>. 


€^ 


^ 


ifi 




«» 




rH si 










co 


^ 


o 
















s 




<« 


«« 


^ 




^ 


^ 












Tf" 


































«> 


w^ 




























«» 












































Oi 






■*(N 


tD« 


toco 




CO 00 






00 >o 


«oo 






(N 






"^gj 


iO 


OS 


^8 


.-HtO 


NM 






CO C<l 


CO 


N 




o 


PJ 


c* 




CO 




t^ 


lO 






^ 


t^ 


r-H -^ 


CO 


O 


t^ 


to 


to 


PI 


S 




CO 


»-T 


o 


o? 


o 


to" 


^ 


o 


i-T US' 


d 


t~" 


irT 


>o" 


^ 


t-^ 


s 


o> 




t~ 




4C 






N 




o 


00 C<1 


1^ 


o 




t^ 




to 






ira 


CO 


€*^ 


^ 


^ 




Vi 




«e «> 


<« 










00 


















s 




^Q- 








«« 


«e 




69 










■**" 


































«» 


«^ 




























w 










































^"0 


CO 


C^ 


ss 


coco 


<^o> 


•* Q 




>^ (M 




00 


0J05 


T)l O 


00 


00 


t» 






c«S 




«D 




MOl 




lO 


r~ ic 


CO 


t>. 


lO 


U5 


lO 










OS 


t^ 


lO 


US 


to 


CO 


lO 


OJ 00 


•^ 


00 


-^ 


00 


t^ 


to 


o 


o? 




^ 


ifj 


Otf 


oo" 


t-T 


im" 


^ 


t^" 


g § 


^ 


s" 


u^" 


(>f 


to" 


d 


to" 






c^ 


o 








■* 




o 




cs 


o 






■<j« 






to 


fO 




6^ 


69 




ffi 


e^ 




T-^ 


«fr 


(M 




t^ 


s 


o 
















V¥ 




Vi 


»» 


m 




a» 


«9 




«> 










CO 


































»» 


«e^ 




























«9 












































o 




-Tt*rv. 


CJ to 


to -H 


t~tr~ 




S 8 


t 




00 t>- 


■* o 




oo 


to 






cs ^ 




00 


c^ t^ 


r-t O 


N t^ 


Ol 


t~ 




Cl 


o 




o 


CO 


CO 




o 


to 




00 


to 


» 


■* 


N 


CO CO 




to 




t^ 


^ 




IM 




en 


^ 


t^ 


Os" 


(N 


00- 


Tj*" 


■»<" 


T)<- in 


^ 


^ 


iC 


^ 


■o 


t^ 


■*" 


05 








«» 






■* 


CO 


t^ 




■* 


r^ 


o 






<M 








to 


Tf 




«/» 


ff^ 




6^ 




^ <*9 




«^ 


(N 




r* 


00 


O 
















Vi 




««• 


«« 


fA 




60 


•5 


tfa 


t9 








09- 


SI 




























t» 










































t^t- 


us 






^00 


CO *c 


00 lO 


•<*• 


•* <7> 




■<»< 


OON 


■<J4 r-^ 


O 




CO 






W ■<*< 


s 




c^ cs 


rt CD 


MO 


CO 


t^ 






o 


r^ 






C<) 


a> 






00 


lO 




00 






M 


lO 1—" 


CO 


00 


o 


to 


o 


b- 


t- 


CO 




^ 


:S 


OQ 


^ 


o 


^ 


>o 


m" 


c" -^ 


d 


to 


Cvf 


■^* 


s" 


^' 


to 


Oi 












•o 




i^ 


•o c^ 


?3 


<^ 














t^ 


o 




^e- 


Vi 




€^ 


IM 










1^ 


00 


















«» 




tf> 


«» <» 


««■ 




€.9 


«e- 


v> 


«9 










■«*<" 


































«» 


«^ 




























«^ 










































h,«J« 


<N 




S2 


■*oo 


§23 


OSO 


t- 


s s 


CO 


o 


t^O 


•<j< to 


a 


to 


to 






(MO> 






i-lCO 


■^ 


Oi 


■* 


<o 




CD 




to 


to 


§ 






<D 


o 


to 


c^ 


CO 




(N 


CO 05 


■^ 


o 


fib 


-H 


■* 


to 






ci" 


(D 


^ 


s" 


to 


o 


»■ 


CO 


h-T cf 


^ 


oo" 


lO 


§ 


co" 


oT 


00 


c» 




00 


^ 






CO 


N 


o 


tO CO 






00 


IM 










p- 


■^ 




«^ 


«e 


1-H 


















oc 


o 










6©^ 






</> 


«> 


«» 


a» S 


(fi 




S 


69 


Vi 


i/i 










•^'" 


































«• 


«■ 




























a» 






CO « 






















oooo 


Tjl f~ 


^ 


00 


to 






NOO 


























OC 




00 






to 






















•«• 


t^ 




00 


CO 


S 




(-J 






















co" 


1--^ 


31 


to" 


d 


Ci 


























IM 


C5 




o 


CO 






«^ 






















«e 


ee 


;^ 


SI 


o 


















: : Q 




































■ ..c 








































































' '.2 








































































1 •'S 




































■ 1 a) 




































1 1 Ut 




































' ' ft 




































t» 


' c 


































1 It) 


\z 


































! l-a 


its 






































































1 1 ta 




1 X 1 
































' ' S 


\ c 


1 03 • 
































1 ; a 




ii 1 


























1 1 ^] 








"O 
































1 1 Hi 


1 


c:> 




















3 ! 






1 1 H 

1 1 0! 


! 1 n 
S ;.2 


t/i i 


1 :a 


: OS 








J i 


s i 


















lii 


1 If 


1 i 


§ ;5 


I CQ 


!? ;f 






a 1 

03 1 


'3 ! 

CO , 












a ' 






a''l 


a ' 


& ;« 


ia 

' o 


'Sis 






ft ■ 


ft . 












a : 






a ;•« 


a : 


a ;& 


:^ i| 






a 1 


a : 


'M 










O ' 


' a 




O ' « 


^^1 


O '- 


o ' •S 


• o 






O 1 


O ' 












o is 


;8 


i^ 


^ la 




o i.g 






ili., 




■3 i-S 


is 

1 M 










l|l 


11 




•23S 

a ° 


t.4J a 


l-« ft 




11 


ount. 
befor 
ount 
befor 


■" > 


°2 


L..U> O 


I- J o 


s3 

1? 


^1 






1 


|i 


0) a o 

9 O 05 


a) a 


o tr. 


111 


ao9 

o 
Q 


o 




^ 


igc 


at^ 


sa* 


sag 


lag 

1 


51 


Am 
Income 

Am 
Income 


as 


a-s 


a 




"5 
o 




o S 







^02 
> 

i5 




^^5 
fi 


o 


o 
Eh 




-' 


c« 


« 


V 


•o 


(D 


t-i 


00 


a> 


d jj 


pj 


ed 


•i 


■a 


<c 


55 





CONCENTRATION OF ECONOMIC POWER 



229 



•Oh- 


^1 




^1 


^3 


CM eo 

CO 


^ 

^ 


'^i 


"S ; 


1 «o 


C0O5 


^1 


^i 


«* 


o 


fe 


^ 


§ 
^ 


i 


i 


SI 


^ i' 


1 M 
1 «e 


00 


*9 


to 

69 








S5| 






CO 


'^i 




I '^S 


«•<!)< 


1 


to 


i5 




s 




in 


6» 


«^ 


s 


1 S3 


00 




i 
























t/}- 










-i 


o 


00 


i 

CO 


'^l 


'^i i 


1 rJ<io 


toio 


i 


g5S 


«» 


i 


05 


CO 
69- 




en 


§ 
u 


o 


«* 1 


I «^ 


S 




S 



i-HN IM<N 



SS SS 



N W3 «<0 i-l iO Wco COOS CO 

5; o r^ (^ cj c» 

O 00 00 CO .-1 1-1 



00 


t-^ 


a> 


OT 


05 


>o" 


S3' 


N 


co" 










co- 


































«« 


«> 


«l9 


69 










«» 






00 00 


?35« 


-9<oi 


Sf3 


ss 


-i 


tC 


(MM 


"S 


i-HO 


^s 


U5 0C 


a> 


n^ 




•— ' 




f^ 








CO 


00 


CO 


e< 


00 




CO 


o 


(M 


u^ 




^ 


cs" 




^ 




o" 


^ 


s 


^' 














<M 


















«» 


«» 




* 










ffi 


«e 


Si 



l-H Q « CO 



<e^ Mpj 



-H^ rt OS 



*» ^ 



rt CO 



CO t^ coos COOS CO t^ 



c^oo «e^ CO 



ss 



•^ ^ CO ^ CO CS t^CO OS 1-H ^ f-H < 

U3 M CO CS CO W CO CD ^ C 



e<> <« t~ 



CD S 



SO 

3 -SB 



\'^< 



3° 

§5 0^:5 

05 O 



sag 

9 3 



■|0 



Hi I 

Kg ,' — O 

I w oj a S o_2 S c5 5 

1.2 -g 3 t 3^-? 32-S - 

oagSegSgoSg 
ssaoassSccss 



2 M 

0.2 
aa 

o ft 

ii 

a°« 

■Ojo 5 

••Bag 
"5 a. 



.-I CO »0 W Tf 



r-< U3 



co*o ^co 



■^ifi-H lO W 00 ^■ 



1-t kO 



-4- ■a 



ft 



m c 



•oB 



e 

•" o 

sagqagg"2.2ag 



<; E^ fl t^ £^ 

s s 8 a a sj s ^ 



n 



o p 



S 8 



•"g 



230 



CONCENTRATION OP ECONOMIC POWER 





Q 


»o 


oco 




o ■* 


ooo 


?S2 


to CM 


CM 


coco 


CMO 


50 1^ 
Neo 




tot^ 


10 


to 


,_, 






-^ 


CM 00 




CM -t 




"S? 


t^ 


M>0 


CM 




CM CO 




?5 







to 


to 








oo 


•<JI 


•o 


o 


^ 


X 




00 





t^ 


to 


tc 


u^ 


00 




»o" 


r^ 


lO 


lO 


^ 


^ 


xi" 


■^ 




^ 


«f 








m 


(N 


•^ 


2S 




00 


00 




to 


•* 




«» 






t^ 


CM 


00 




» 


Ol 


o 




««^ 


««^ 




■V 


«« 






















«^ 


&3^ 












<» 








«& 




«^ 


6« 


s 


f» 




^ 


IN 


0-* 




o — 


00 to 


?32 


t^ w 


•* 


t^-ai 


■a'o 


too 




tool 


CO 


to 


CM 




00 


t^ 


IN N 




C<1 to 




CM O 


t~ 


CM CO 




CM t^ 




CM t^ 


CM 


to 


to 


CO 


o 


o> 


eq 




o 


CO 


m 


00 


t~ 


•^ 


00 







05 


to 







fsT 


to" 


(N 




QO" 


co" 


to" 


i 


cm" 


05" 


co" 


0" 




s 


od 


^ 


0" 


o 


•o 


<^ 


00 




(^ 








1^ 


«» 








00 


CM 




OS 


o 


»» 




«> 








s 


10 














Oi 




(^ 


f^ 










«» 


«e 




««^ 




«© 




e» 


«» 


So- 


«» 










































-^ 


0S40 




OS 00 


i>.to 


^>o 


t^ 00 


ta 


?5?5 


CM 1^ 


to t^ 


pHO 


to to 


CO 


00 


in 




c5 


Ol 


1-H r- 










CM CO 


5 


CM 


CM CO 




CM "O 




to 


to 






IN 




CO 


*o 


CM 


00 


to 








•* 


CO 


»c 


CO 


CM 


^- 


>c" 


t^ 




co" 


u^ 


CO 


o* 


OJ" 


>n 


N" 


t^r 


■^ 


^ 


00" 


T)-" 


ud" 


a 




en 


t^ 




1^ 


00 




o> 










6^ 





>o 


to 






05 


o 


<» 




a* 


«0^ 


s 


g 


S2 


1 


s 


e* 




«« 


c» 


^ 


s 




IN 


t~ 


8| 




oco 


l^03 


Sl 


toco 


^ 


t^CM 


4O00 


too 


rH l» 


too 


00 


r^ 


10 




CO 


I> 




IN 00 


f-H t^ 


CM CM 




CM 00 


■^ 


CM CO 


00 


CM CM 


t^ 


?3 


05 




•^ 


lO 












02 


t~ 


CO 




CO 


00 




r>. 


10 


m 


s 


o" 


CO 




oo" 


co" 


M 


lo 


to" 


^ 


^ 


od 


CO 


<N 


^ 


t^" 


co" 




Tj< 


Ig 




r^ 


to 






cm 


Tj* 








1^ 


o 






o 






€«■ 




?3 




^ 


10 






4e- 


N 





CM 


















»» 


«^ 




«« 








6^ 














































«* 


f» 


























«3^ 


€«■ 






t^ 


IN 


oco 




OJtO 


a> to 


-<»< 00 


Jm| 


00 


t^ CO 


U5 -H 


too 


»-l f- 


toi^ 


lO 


e^ 









to 


(N-M 




rt 00 


rH t^ 


CM —1 


00 


CM CO 


00 


CM 00 




CM 01 









m 


»-' 




Oi 




>o 


tc 


CO 




lO 




io 




>o 




CO 


■^ 


r^ 


»o" 


■o" 


oT 




to" 


,-i 


to 


co" 


03 


g- 


0" 


CO 


IC 


,_J" 


00" 


UO 


t-T 


Ol 


to 


00 


lO 






00 


1^ 


OJ 


CM 






^ 


cS 







U5 




o 




«o- 




«^ 


6* 






«» 




«» 


CM 






CO 



















v^ 


«» 








«« 


















































«^ 


«» 


























w 


«» 


«» 




•*** 


CO 


?5« 




CM 00 


CO t^ 


?52 


t^— 1 


t^ 


t^co 


'C^ w 


to »o 


-HtO 


to-< 


CM 


^ 


s 










Nr~ 


•X to 


CM 00 




CM »C 


to 


CMO 


s 


CM w 


CO 






00 


w 


o 






■05 


CM 


05 


U5 








CO 


■0 


CM 


CO 





Jo 


oT 


'X' 


■* 




o" 


g" 


00 


od" 


•^ 


^ 


•«^ 





,_7 


I-J" 


to" 


od 


to- 


05 




to 






u 


t^ 




s 




««* 


CO 






00 








"^^ 


(N 


»» 




** 


«» 


«s 


SI 




SI 


6^ 


1? 




"'I 


^^ 








































«» 


•» 


























6* 


(^ 


«<» 




** 


Q 


-H 00 




«o 


1-H 1-1 


ss 


t^— 1 


o 


t^-H 


I-( rtl 


CO po 


^ Tj* 


CD t""* 


CO 


CO 


CO 








<N t~ 




CM t^ 


CM —1 


CM 00 


>o 


CM 00 


g 


(N lO 





^s; 






■»» 


s 


00 


C^ 


t^ 




t^ 


CO 


t» 


CO 


o 


CO 




>o 





■<x 




to 


t>r 


t>r 




tC 


IC 


i 


1 


co" 


1 


r-" 


^ 


^ 


c^" 


■^" 


0" 


t^ 


Ol 


■o 


S 


^ 




S 


>ffl 


^ 


«^ 


i 


«? 




00 


t^ 


CO 














w^ 


»9 






«» 




















































6^ 


9» 


























««• 


«& 


i» 




00 


O 


00 CO 




1^ -H 


00'* 


CO lO 


i^>o 


to 


t^ CO 


CO -^ 


co-^ 


1-1 00 


tc CM 


s 


00 


OS 




lO 




»-« o 






T-H 00 


IN CO 


CM 0> 


CM 


CM 00 




"S 


f 


C^ "3 


CO 


!2 


s 


o 


lO 


00 




to 


05 


CM 


00 


T*^ 


CO 


CO 


t^ 


to 


»o 








oT 


oT- 


^ 




^ 


oo" 


1 -■■ 


oT 


cm" 


cd" 


•rS" 





i 


•*" 


r-7 


10" 


Cft 


05 


r^ 


S 








t^ 


■* 




€e 




«^ 






to 


00 









««• 




6<? 


s 


u 


»» 




Jg 




s 


i 




CO 










































<^ 


«« 


























«9- 


«» 


so- 








































■O ' 


■O i 


































o 


a 




S 




































C3 


















ta 












.9 ; 


9 

T3 




x: 


















1 1 




: ft ; 






S ' 


o 


Q^ 1 


4^ 1 


i '• 


s i 




S 1 


J ; 


i i 


J ;ft 


i i 


;& 








3 ; 


3 . 


■a ; 


■a 


'3 1 




'3 1 


s'a .' 




'3 1 




■a 1 


S '''^■ 


3 ; 


; c 










o 1 


Cli 1 


Lh 


c9 1 




03 I 


S a > 




OS 1 




ca 1 




e8 1 


1 V 








^ < 

3- ' 


g I 


ft ' 


S 


ft . 


ft ' 


ft 1 


^ ft ' 




ft ■ 


ft ' 


ft ' 


ft l-oft ' 


1 c 








a : 


"3 


a : 


a : 


-.a : 


sS ' 




a : 


a ! 


a '« 


a '■> 


a ; 


■5 








to ■ 


O ' 


■o O 1 


o ' 


O o ' 


i2 O 




' 


' 


\S 


2 


1 




is 






1 i 


■*J 1 


■ • " ; 

to.« 


X3 


o ; 


.." 'S^ i 


2" ■ 


a 1 


^11 


" 1 


12 
t-« ft 


TJ 

V- ; a 


1 


i a 






S^ 


to i 
03^ 


'i ° : 


a 

a 




12^ 


11 ° ' 


3,*j 


'l 

Ul 4^ 


1 3 

•Sag 


1 


IE 


i 




3§ 


3§ 


i|| 


^^§ 


Sl§ 


s^§ 


£^1 


2§S 


III 


l§ 


J2 §-0 


a o-e 


II 


g§ 


1 




■|a 


S O 


fci a °-Q 


« o 


03 g o 


i2 a o 


MO q3 


a a 


a ° ;, 


a s-o 


a ^ 


'U 







Sa 


SsB 


bj 


aa 


agg 


§3a 


«aaaa'« 


3 a- 


333 


III 


|as 




as 


a 




«^ 


"-«j 


^z^ 


1 


2;< 


S2;<< 


1^-^ 


a'^< 


S^J* 


Z<iS 


z^s 


^<a 


<!-3 


<1'3 


< 


















1 1 


JZ 






■t~s 


-1^ 


c 






:? 


1 


5 


c 




o 


< 


p 





3 




3 
CO 


z 





C8 

6h 






M 


CO 


Ifi 


ui 




tc" 


^ 


od 


^ s 


^ 


e^ 


cd 


5" 


Ul 


to 


j£ 






CO 


CO 




CO 




CO 




CO 


•* 


^ 


'S* 


"* 


T»l 


■^ 





CONCENTRATION OF ECONOMIC POWER 



231 






00 CO 

OfO 



05^ ,-( -H 



6^ 



»C yD 00 r-( (N Tjf 



.— Ol .— o 



CS|*-i 1-HiO Ol GO C^C^I CI CO 



<0 ^ C^ CO O <N 



«?6e' ■-• 



^ CD t^ lO rj< Oi ^ CD 



S -^c 



t^ ^os i-H^ cO(N XOO CD-^ *-!•-' I:- CO t^O C^iO Os-^ ooo 



1-H <MOS 



^ CO 



lO (NO W t- 



T-l^ OS TJH 



CI--* OiCD C^ Oi Tt^Os 



* -^ -i lO 



t^ OS lO O 



f-.-rt^ ^- o 



* f-* CO CI r-< lO 



CC O «~i 00 



O0<U^ CO CI 



CD «-H 



■* cj '-' r- 



CO c^ b- ur^ 



coo I-- CO 



I-H 1-< ■»*' Ol 



Ot- r-i C 

■»*' C- 

co'^f*" 

00 Oi 

6ew^ 



f-« ^OS tH M t-H Tf< 



»C Oi Ci ^ 



CO "<** Tj< CO r^ Tf 

!-(--' cO CO I-H lO 



y-* c* 



.— I O CO lO "^ CO 



coco .— ( to »0 Ci Oi 0> 



T-t CO 



i-H OC 



.-. CJiO i-tC 



cDio r^ CO 



Wf-H 1-t 



ooi-i cc OS 



CO Tt* r— 'Tt* ^ OS 

t, ^ Oi ^ — 



r~* CO 



cc t- OS OS OS ^^ 



°o 



2 a 



K ft 

— S 






O « 



a o g s 5 
3 p o 3 a 

c 
Q 



O — c 



9 ^ 

•si 2 

«^< 
p 



5x1 g 
"So 






■sa 









o .- *^ •-, 



I'S fs/s 



g 

o 



i a o 
13a 



^ o 

p2; 



:2 g^^ 



o 



(33 

P5 



5 c 6 S'O 



^ o 
6 1- 



0" 



^ c tx S o 






Cr-B='OP°--'P'^'^p'SJfPS 
E~ s S =^ 3 £ ^ 5 £•= 3 £.S P a 

° « 5 § 3 

S [X, . m s 



<1 



232 



CONCENTRATION OF ECONOMIC POWER 



WiO C<t>- ^00 W<0 N 



*0 MO h- f-H 



■^ lO ^t 



;2 5 



OC i-i ■* 



.-100 cs •«< 



■♦rt ON 05 i-i 



•-I •» 



<0— < ^N CCtH lOOO ccc 
CTC» NOS i-HW Nr- c 



r~ <N t~ —c 



COM r^N 



-H 00 

^ CO 



iS ^ 



ts> COWS cooo woo OS I-* o-^ loeo 



.-H-"^ csco 



iO CMCO i-i t>- 



©9 r-) 



*0 M 1— rCft eO»P ^ C^ CS CD 00 »-< 



Cicn NCO r^ tJi C^ -h 



!>. r-> t^ 



1-1 in 



o w 

.-4 CO 



::; "5 r:i 



tC O CO OS 
CD C^I CO 



j05 ©s-< no N M 
1 '.3 1-1 CO 1-1 »0 M (N 



•-H 00 ao-^ r- o i-h < 



C£> .-> 



1-- CO 



lOOS ©oca 1-H CD <NCO 
M-^ .-H S© 1-1 CD M-* 



1-H »0 



fH C^ 



Cff M .-4 C 

.— ^ c 



t^ 1—1 



»0 00 CCi— < OM C^l lO 



CO »-( 



sa 



a o 

<c a o 
Srg 



a o 



O Q 



sa 



3 ^ 

■5 a 

a^ o 

t:3 o 



Ma 



a o o 

5|a.. 



a ,„- S O 5 S a 



aofeSogag 

38^30. „3S 



S?<! 



c \r: 



<-Cf 



&a o>"a o 

5,3 6^3 



«ao 
s|a 



sa 



-ao 



) ■ « o 

! fl S S a 



§aosao 
.S3 6" 3 a 



CONCENTRATION OF ECONOMIC POWER 



233 







i> r- 


CO 




e^ 




•vo 




tf >o 




M05 




•♦o 




cs 




to 




CO 




,_, 




(N 






CS tT 






c5 




NtO 




(N-* 




CS CI 




o 








o 




■^ 














w 


CO 






-* 




CO 












lO 








o 




I-- 




i-< 


CO 




co" 


t>-" 




e-f 




to" 




^ 




"tj"" 




<= 




TP 




« 




o 




eo 




Csf 


s 




s 


r~ 




CO 




Sj 




OT 




49 




SI 




S 




49 


^ 




eg- 




<^ 






SI 


00 
49 














































t^ IC! 


00 




~ 




CO Oi 




N-* 




N T)< 




lOC^ 




oT 




~ 




00 




Oi 




~ 






e^o 










IN 00 




Ml^ 




csco 




-* 




00 








■^ 








s 








f^ 












■«< 








t^ 




•^ 








o 




00 




IC 






























































S5 




of 




















r-T 




CO 




C4 


§ 




o> 


to 










*9 








49 




11 








to 




■**« 




SI 






r^ 






«(9 




»> 








49 












49 




^ 








ci" 


t^" 














































^ 


«> 






























































































t^ lO 


00 




CO 




■^ t^ 




M o 




C^OO 




■^ CO 




















o 






<N<» 


s 




t-- 




esrj 




M 




(MtO 












to 




cq 




Tf 




■^ 






l-» 


O) 












CO 




•^ 
















to 










•^ 














































v> 






t~." 


c^- 




IN 








to" 




■* 












r 




o" 




CO 






CS 




O 






«9 




SI 




«5 








»? 




UO 






'*' 














CO 


IC 














«9 








49 




6e^ 


€/? 




^ 










(N 


r-- 














































Vi 


c« 














































b- OC 


C-. 




t~ 




C^ 00 




■<»l c^ 




SS 




■«> 00 




-<*^ 




cc 




t^ 




'<?' 




a> 
















M 00 




M -1 






c^ 








■^ 




CO 








o 


CO 




C^ 


00 




t^ 




t^ 








to 




>o 




CO 




»r 




to 




•"Ti 








•»r 


oC 




cT 




I~-" 




li 




C^ 




s; 




oo" 




c 




lO 




^ 




oo" 


a> 




Oi 


00 




















m 




Tl 




■^ 
















lO 




<ft 




v^ 








</^ 








«» 




&=- 


6e 




64 




m 






cf 


to" 














































69 
















































t^ t^ 


o 




*? 




•*o 




(NOl 




coo 




uim 




to 




ic 




u? 




-^ 




CT 






cs r* 


r^ 




00 




•-100 




c^co 




MCO 
















t^ 




o 




CO 


CO 




a> 


00 












CO 




00 




^* 




'^ 




CO 




IM 




Cft 




ira 




lO" 


^~ 




^" 




Ef 




CO 




c^" 




^ 




to 




00 




of 




^ 




to^ 


o> 




CO 


r^ 




CI 








«9 








49 








b- 




t- 




s 






>-« 




o 


o 




fe 




Vi 








^ 












«^ 


49 












































































































«^ 


</i 




















































"^17 
























■^ 




"^IZT 




^^ 




"^ 






t^ •'J' 


to 




•o 




oc^ 




t~>o 




cot^ 




W* 








CO 




00 




00 




o 






(>»»»• 


"«»• 




o 




C^IO 




r-i O 




o»>rt 




t^ 








■<a 




o 




^f 




t^ 








CO 








o 




t^ 




o 




o 




-^ 












o 






Jo 




^ 


c^" 




o> 




OO" 




cf 




of 




CO 




CO 








oo" 








c^ 


05 




*o 


Tj< 




t^ 








49 








49 




to' 












to 




g 






cs 


uo 




«J 




69 








49 








■^ 










49 


























































to" 














































«» 


«» 














































t-- -H 


to 




^ 




C^ Tj* 




t^ N 




c-ies 




tot~ 




OJ 




»c 




r* 




CO 




"^ 






CI t^ 


00 








c-»-* 




1-^ lO 




c< to 
















o 




to 






o 




t~ 






■<}< 




ff 




UO 




o 




■* 




r^ 




c 




t^ 




■^ 




C3 




^ 


c^r 




o 




to 




■^ 




^ 




^ 




oi" 




(C 




rJ^ 




^ 




00 


§ 




■^ 


s 




z 




i^ 




«9 




49 




«fl 




^ 




g 


fe 




SI 




m 






of 


to" 














































«i 


«9 














































lO eo 
















































c^ -^ 
















































CTI 












































CT> 
































































































o> 




o 


















































































































; 






c 
















































c 
















































































































































d 
































































































s 
















































as 
















































i-i 




















































a 












































■O 




o 












































T3 




2 





























































































ca 




£ 




1 

cc 








































c« 




c. 




1 

o 




























CO 
















"O 






























Ol 












i 

8 




fl 




o 










































c3 




c 




























ca 




a 














tJ 




a 












i \ 










J : 


a 

o 


S ; 


O 


1 ; 




.2 ' 


p 




% 









o 








































ce 
















a \ 










'5 1 


a \ 




'5 1 




"a ; 














c: 












a . 










a ; 


c! , 


c 


03 . 




S ' 


t^ 




0) 




■t^ 
















Q. > 










a ' 


e 


a ' 


a ' 




D. ■ 


OJ 




a 

o 




ai 




c 












a ; 










a : 


a ; 


■c 


a : 




a : 


c 






u 




C 

o 












o ■ 




<D 






c 1 




o ■ 


a 


° 1 




o ; 
























o I 

UI.4J 


<D O 


a 

c 




c 
s 


O 1 


■a 






5 
a 


O 1 






c 




.5 

o 












si 

3 a 


a 
o 


c 


38 


q; o 


o 


" a 


^ a 






c 


^ 


c: 




3 c« a 




a 




6 


^ g o 




|i 


■S 




X3 


~ 


£ 


3 
c 




O 


^ 


3 


i 


3 

o 




Sa 


a 


^ 


03 


sE 


c; 


§s 


^ 


3 U 


s 


a 


» 


a 


c^ 


a 


2i 


g 


3 




"3 
o 


15 <5 


3"^ 

p 


o 
a 

8 


< 


2 


:z;<! 


1- 

1 


:2;< 




;^<; 


> 
Q 


2;<i 


< 


3.«< 
o 

a 


Incon 
A 

Incon 
A 

Busin 










M 


CO 




■v^ 




lO 




la 




i-i 




00 




o> 




d 




;:: 


d 





-^8 



a o 



234 



CONCENTRATION OF ECONOMIC POWER 



■"^ r- <-!■«# 1^ F 



C^cO ,-i-^J^ (Ni-H (NiO C^OO 



r^ iC O -* to (N CD CO O _, <-! < 



^- ^e- «^ 



CO lO t^ i-t 



^o ooo 



CO CO po -^ tO"^ 00 r-( CO":) coco t^io »o c<ii-i c^o i-io rH as 



CMlM C^l C^ 



f-H ,-1 O 



lO CO 00 CT> 

'-H O --^ t-< 



€^ ^- ««■ 



CO CO -^ ^ ^ 



W r- CI 



i-H O CO CO CD CO t** 00 t> lO ^H lO CD O COO CO I^ (N 
O '-' O CO CO CO C<J<N C^O ^00 -M -^ C^ CO C<l CS .-1 



lO i-H CO CO 



,-» CO 



HO <-• O T-H' CO 



€«• «> ^■ 



Tj* ^ 



1-- o oo CD CD CO c) »o COO d a> r>- tt 



(M!0 C^ICO i-(C5 IM05 C^Ci C-IO CO 



CD 05 (N CO CD W-O --I O 



CD CO 05 CO 
^* .-( M CO 



€« ^ €^ 



CD CO CO coo CO t-* r^ Oi t^ oc 



CO CO CO CS LO C^ lO 



(MO CS O CS -H 



CO iM CO coco 1-H O f-i O lO 00 



1— -H oo Ol »-" 

-^ CD Ci iC O 

«e- 1-H o (M CO 



«e- €^ 5^ 



W- .-' I-H 



»-hO oo CO CD CD i-HCO t^CJ cot-' t^b- 
•^ 1-tO -^ rt* GO CI 00 (NlM r-lCC CQOO 



t^-<j* CD-^ 



CI ^ Ci i-t 

■^ CD O CO 

S^ .-H O C5 



i-H O '-H O CO o 



.-" iC 



*-« O 0>0 CO CD O CO C 



CJ d r^ lO b- ir^ 



CIO C^Cft i-tcO C^O OCO dl^ 



-i^ i-( O C^O I-H O r-lTj* 

O O »0 O I-H f-H 



-^ -H CI 



lO I-^ d CO 






ooo CO CD 



CJ CI d 



t- o o 



-H O — I 



ooo CO r-* CO 0> coo 



CI O lO 



32 B 5 g 
S h = a c 



ga 



siti^siisii 






^a 



£ 5i °.^ ' 



2.'3 









ad 



i:^<?:^-';' 



:23a 



ga 

a ? 



: S C 2 
:ja 3 a 



Ph 



u 



E-i n 



tH i: 



CONCENTRATION OF ECONOMIC POWER 



235 



CO '-' CO CO O CO 



r-(0 f-l O 



* t^ 1-1 O lO 1-t 



X"-< lO CO o 



^1 



</^ <^ </^ 



H 



r-t W505 »005 OOCC O"^ eCCD 



i-i 05 i-H OS ^ I^ 



(NO- CM to 



<0 «5 Ni-I t^05 



0> — t-H 



.-I e^ 



^^3 ^ 



3 0> PO (N « CM CO CM t^ CO 



>-( OS 1-1 OS 



t^ CO r> I 

I-I-* CM" 



t^ -^ 00 t^-* 



«» W -H 



t^ 05 C^ CM CO 
CM CM iO m lO 

.-I 1-1 to CO 



03 05 t^ 
CM CM CO 

CO O .-I 



t-H r^ 



CM 05 eq CTi C3 CM 
T— I 05 »— ' 03 CM CO 



CM O CO CM O 



CO c:5 lo 



.-I CM .-1 



€^ €^ ^- 



(»■* to 



to to coi-" eO"-i 



i-f 05 rH CO lO to to »-( OS i-H OS •-< O 
00 CM .-1 to to CO CO cs 



t-5< ^to 



lO rt 



«fi- r-l rH 



r-H .H O 



«e^ «» ««• 



.-•00 «oo t^co to-* 

.-•OS CM t^ 



CM CM -^ C^ .-< C 
r-H i-i CM 



f^ ^ ^ 



lO •* 



rH to to C'J CM 



CC CM»0 CMin 0000 lO-* too 



1^ o to to .-I 















Tt* 








lO' 


^ 


















</t 



o OS o OS io CM o OS ^ r:^ 



■-. o wo >-i I 



CM CM e^oo 



C^ »-4 .-4 CO OS tC 



S IC w ri CM 
HO CO CO c^ 
00 00 00 ■* 



»&««««■ 




p.© 
-a 'a 



So 



"3S 



- k_ h^ c; p 






o t/. o-g S oS B 5 V E S-c S o S E 
a.S g-c § B^ § E S 3 E-r 3 E S3 

o c 5 t: a fc! 



II 



a ^ a c >^ 
3 fe 3 7 3 

o t c * o 

E~E£E 



12; E- H 



236 



CONCENTRATION OF ECONOMIC POWER 



C^ 00 i-l r-- iO CO <C>C 

CO ":; cs r- cm c 



o t^ h-«o ■«»< w 



»0 ^ y-t 



h- wt 



,-( Tt«b- wio 



1-1 04 CO 



t^ to WO 



CD lO t^ LTD 



CD !*» CD 00 

CM d CM r» 



■^ CO i-t CO co^ 



1-J CMCM woa 



«o .-t 



U5 t- f-H O 



CMCD CMC© 



CM i-H 



M^ CM CM !-!,-( CO TP C* ^ ■* 



^ ^ 



CD '-H t^cD 
CM CO CM »0 



(-!»-< Ol CO CO 



CM ^ CMCM ^^ 



CO W CMO» tCt^ 



lCO> CMCO 



1-i €1^ 



0> t- CM C^ 



CD "-I CD ^ 



CM 0> 1-" 



t-< f/^ 



^ 1-1 




CONCENTRATION OF ECONOMIC POWER 



237 



OOOS NC^ >-H C 00 



2?3 



o ■«< « 



iH 0> 

s 



loo tffOQ t^ o oa »o ^ 0» 
ff cf «" ■* e<f 



oe< f-iw .-(O 



CO c 



tho moo oc^ 

O O i-H 00 



O »-H 



CO O COOO 



S2 



rH O Oii-H ^ "tJ* '-•Q t*00 



coo c^o 



i-<<0 w^ 



OS CO th »o ^H o a> r^ f-« oi 
t-i OS r>- o »-< CO ?-< i-H 



O CO r-l CO 



OS Oft iO o> 
.-H O CJCO 



2S 


-"K 


00 




t-" 




■^ 








a>N 


rt >o 



O CO 



i-H « .-co coo» 



rH O 05 O .-< 00 t-( O 



CO »-^ 



■-10 CJ --H 



i-(0 COtJI 



t^OS >d<0 1-1 



gOS t-H t-t CO r-< C 
r-1-* rH — ! 







238 



CONCENTRATION OF ECONOMIC POWER 







00 00 


,_( 


^ 




O'-l 


■^ o 




Sl 




■<*<co 




Ol 




eS 




»o 




00 




,_, 


■*(N 




t-o 




CO 


CO 


lO 






M-* 








(MCO 


M o 






OS 




U3 






to 




IN 




■* 


OS 






o 




1^ 


t~ 


CO 






CC 


(M 


Tt< 




00 














to 




CO 




o 




o 




« 


■«J* 










t^ 


00 




Cf 




Tt^ 


di 


^ 




O 


?f 




oT 




to 




ira" 




■* 




to" 




y-^ 




*o" 


00 






lo" 




co" 


00 


r~" 


^ 




o 


c^ 


o 








to 












OS 




•»}1 




t~ 




1^ 


c^ 










in 


lO 


00 




00 








€^ 


«e 




»> 








IN 


























IN 


-'ll 


lO 






c-f 


ffi 


«^ 


















«* 




«5 




Vi 




s 






^ 






Vi 




69 


69 


«^ 


































































00 w 


a 


o 




C^ Oi 


00« 




I-- o 




C^ ■"! 








CO 




•* 




o 






■* N 




U5 


o 




B 


CO 


lO 






^tC 




00 




CS-!>< 


r-Ol 




cs •* 




















IN 




eo 








o 




IN 


CO 


lO 




00 


00 


00 




00 


Tj* 








f-* 




OS 




I-* 




N 




to 




M 


lO 












■a< 


OS 




os" 


(N 


•^ 




o 


^ 




lo" 




^ 




cs" 




in" 




t-." 




o" 




to" 


in" 






»o" 




to" 


^ 


5- 


05 






'S* 


«e 




IM 


















OS 




CO 




00 




Vi 


^ 






OS 




o 


o 






CO 


lO 






«» 


«> 




«^ 




** 




£» 




69 




«? 




w 






«» 






s^ 




69 


lO 


69 


































































QO lO 


tr~ 






in ■* 


00 OJ 




to 00 




coio 




o 
















to 


Tf O 




U5 O 




00 




00 






M o 


O 


o 




IN t^ 






"S8 




•^ 




S5 








OS 




CO 




•^ 








o 








CO 


CO 




OS 


t^ 


o 




Oi 


■^ 












C^ 




CO 




00 






»o 






IN 




t^ 


OS 


■<)< 




t^ 


oo" 


oo" 




o" 


o 




ci" 




o 




to" 




lo" 




co" 




•* 




oo" 


^." 






to" 




in" 


oo" 


co" 


a> 




lO 




^ 










to 












to 




c^ 




lO 






S 






OS 




t^ 


to 










I^ 






(^ 


^ 




t/i 




So 








«* 




69 




69^ 




(fi 










IN 


•<J1 


10 




















































69 














fM 




























































<^ 


«ft 
















































«9 


69 


69 






*i 


■o 






to o 


t^c^ 




t~ t~- 




Til 40 




<N 




t^ 




W 




■o 




CO 


to-o 




lOO 




CO 


CO 


o> 








00 




CJ CO 


t-l t^ 




« CO 




00 




00 












1^ 






00 






o 




?; 


t~ 


10 


n 






05 


o 




Oi 


Tj< 








t^ 




•o 




to 




TJI 








61 


eo 










eo 


t~ 




^ 


''J* 




Tt^'' 


^ 




■^" 




to 




m" 




o" 




r^ 




Os" 




00 


os' 






T-T 




fH 


c^ 


rA 










»o 




tM 






r^ 




69 




<N 




o 




lO 




00 




^ 


''ji 






00 




o 


00 








in" 


u5 


«^ 




V3- 


««■ 




e9 








«3 




69 




49 




*9 






69 






«9 




CO 
69 


69 


69 


































































c§?5 


05 






lO -^ 


e<ir~ 




Sg 




lO »o 




O 




C^ 




O 










COTtI 




■^O 




CO 


CO 


t> 






to 


to 




(NOJ 


.-Ht~ 






IM 




Tj* 




CO 




s 








c^ 


fi 






O 




(^ 


t^ 


-* 


u 




r^ 




•* 




to 


lO 








00 




o 




t- 








CO 




00 










OS 


o 


OS 




c^' 


uo 


;s 




r-T 


^ 




co" 




^ 




n" 




i:^ 




lO" 




^ 




CO 


c-i 






r^ 




os" 


^ 


co" 


(S 




00 


o 






69 




t^ 








lO 




t=- 




?5 




00 












00 




s 


1^ 


'5J 






o 


t- 


M 




(fi 






60^ 




«« 




















69 










■<JI 


iO 










e9 


















tfi 




so- 




69 




«9 












»? 
















IN 


























































«^ 


«^ 
















































e«- 


69 


«^ 


































































?5S 


O 






COM 


«U0 




^§ 




eooo 




"S 




CO 




M 




OO 




t^ 


tor- 




■«■ o 




o 


to 


CO 






W 






(M lO 






05 




t- 




c* 








-^ 




00 








IN 




OS 


C3S 




CO 




■o 




c^ 






to 






Ol 




N 




•* 




s 




o 




<N 


co 










t^ 


00 


t~ 




o" 


to 


s" 




oo" 


lg" 




co" 




oo" 




o 




00 




co" 




e<f 




•«>" 


wS 






^ 




■^" 


»o" 


r^ 


o> 




«D 


CO 




<N 




00 




«» 








SI 








S 




o 








00 




00 


to 


IN 






M< 








^ 






Vir 








M 






{/S- 


















IN 


-^ 


10 










&e- 


































^ 








<9 














Cf 


Tj< 


























































<« 


«» 
















































««• 


69 


69 






00 CO 


00 


M 




¥52 


CO (O 




tot- 




■<J< o 




3^ 




§ 




t^ 




£^ 




CO 


r- t^ 




T(< O 




o 


g~ 


b* 






(Men 








1-H 00 




IN O 




pi 










lO 








CI 


IN 






O 






r>- 


o 






Oi 


c< 




05 






S 




OS 




o 




OS 




(N 




o 




e<t 


o 










OS 


O 







oo" 


oT 


o" 




!>*" 


l^" 




Oi" 




c^ 




to" 




co" 




lo" 




^ 




CO 


-*^" 






o" 




b-T 


oo" 


(N 


a> 




■o 




■^ 




% 


C9- 




t^ 
















OS 




to 




lO 








00 




to 












00 










«> 




«9 




«^ 








© 




s 
















IN 


-ai 


10 










«» 


































© 








69 














IM 


t 
















































69 


«» 


69 






CO »o 








































IC »o 




■*! O 




(N 


IN 


t^ 






Sm 








































to 






O 








C: 


g 




•* 








































CO 






CO 




OS 


lO 


00 




^ 








































^" 






N 




00" 


^ 


10" 




















































lO 




OS 











00 














































69 




s 


^ 


69 


























a 

c 
1 




























































a 

0? 




a 
























































■§ 




c 
























































■a 




s 
























































a 




S 




'i 




















































03 








!«: 




















































« 




1 




0^ 




















































i 




•§ 




OP 

a 

o 








































1 1 ^ 












-^ 




■O 










































1 ', SJ 












2 




a 




o 








































05 












a 




03 




g 
































4^ 1 








1 1 -^ 


0) 


a 
c 


s i 




i \ 


c 

g 








■a 




o 








i \ 




l 
















a 1 








; 


» 


•a ; 




'3 ; 








ce 












'3 ; 




c 
















ca , 








C3 . 


a 


<Si 1 




CB . 






a> 




1 














a 
















a ' 








D- 1 


a ' 




a ' 


S 




1 






c. 








n ■ 




P 
















a : 








a '"^ 


a ; 


■c 


a : 




a : 


H 










§ ' 






a : 




a 






'i<) 










o ,' 




b ' 




5 ^% 


o 


53 


o 1 




O ' 














■§ 








o 




c 






, o 














a ; 


^ 


o 1 


o ; 


Ti 


o ; 


C 




c 




C 






ao 1 


■-I '111 




'M 


, o 










o ' 




8 : 


a o >ct 




'S ■ 


3 


o ', 






OJ 




ai 








^ 




O ' 




o 




o 














« 2 

a a 


OJ 


III 
3 a c8 


!-• .^ 


a 


(_ .^j 


(_ *- 


^ 


^_ 


i~i 


.JJ 


o 



8 



h- 1 




E 

8 
a 




> 


It 


fc- +J 


o 


k^ 


^_j 


o 


*^'e' 


■*^ "ct 


^ 




1 


3 S 


la 




a 2 
3a 


3 


ag 
3 a 


c 


^ 3 


a 

8 

c 

M 


c 

a 


c 
o 

£ 

8 
a 


c 

3 

c 

a 


n 

3 
o 

a 
< 


a 

3 
o 

a 
< 




el's 
sa H 


c 

E 


§ 

a 


o 
a 


3"~ 

a" 


ill 




o 


■z,< 


p 


8 


a 




z-< 


Q 
o 

Q 


7^< 


5 


z-< 


<; 


< 




3 £ 
En Ph 


1 


-^a 

o 
O 


o 


o 


< 








e4 


CO 


Tli 


lO 




to 




t~; 




00 




OS 




<Z. 




115 




^ 


CO 


3 




•/; 


s 


h^ 





CONCENTRATION OF ECONOMIC POWER 



239 



MiM .-'00 c<i o c<i cn (N 00 o> o 



O i-H to rH 



O0C4 00 U5 



1:1 I? 






N, iC C*5 i-lO -^ CO 

CS CD CC O ■' -^ 



J>CO M CO O 



O -^ O CO 



^ CO 



69^ £^ G©^ 





10^ 


•^ Tj< 


■OtO 


a^ 






' -^ c 


N 


torn 


OQO 


t^ 




^ 






^10 





















































M 1 




.— ' 




05 




00 




01 






en 





o> 


TJH 


?; 




«3 


' 


1 rH 


T-^ 


en 


^^ 


'J" 








CD 


^ 


































s 


<yj 








12 

























s 
















«» 1 










S 






Vi 


«« 


*^ 




^M 


« 


KO 10 


« >o 


S 


^ 




1 rixoi 


"S 


t>-eo 


C-«M 


00 


00 


















































'-^ 




.— * 






.— ' 




'-' 






■* 


■* 


IN 







^ 


en 












S ; 


(-H 


^ 


o> 


IM 


M 


OS 




CO^ 


























































































S- 1 










le- 


«^ 


0^ 


«9 


«» 


€^ 








Sl 


-1 




i 


§ i 






















^S 


^^ 


-^^ 


(N 


1 CO 






to 


te 




5 


(M 




^ 




en 


^ 


p 




»o 


0" . 


1 r-T 


,^ 


^ 





^ 
















^ 


































s 










































^ ' 














«e 






€^ 
















6* ■ 










(^ 













O 10 -^05 CO 0> lO l^ 10 CD 



w CO r- W5 c^ 



»40 M — ( Oi 



S So 






O CO "^ ■«*« (N CO iC 00 



CSOO C^CO »-<CS CSCO CSOi C^^O 



lOCO <-l i-<0 t--io c^o ^ ^ 



C^ a 1-1 t^ CO 10 CO © *o O UD 

rH CO ^ c<i CO m CO N •-' cs --< 



r-- ^ 



e^ €«^ 5^ 



(NO 1-1 Tf CO --^ COO COO 
C^t- i-(CS C^ O C^ C^l CS CD 



CD *0 C^ O lO C^ 



C^ CSh- 00 ^*C »C 00 ^GO ClOO 
rJ *"• ^ P C^ rH 01 t* 1— ' (N r-H CS 



0,0 



SB 

P 

OS 



■S3 



•3° 
o £ * 
O a S 



ao 



9-a 



§1 
11 



§6 



3 8^3 



3 2i 
Z<\ 



is ° 

; 38 



' OS 
; 3X3 

1 O <jj 



X3 5^3X3 

Eg'sa 



a— ■" a 
loSo 



3° 



a \Z 



J= 3 E 



>'P 3 A 3 
3603^° 



A '3 
§•§. 

■Sa 

3j: 
« o 

3 t.« 

o 0) a 

.2 a o 



o 



fl ^ 2; 



-r OS O f-i 

-H " JS M 



2 o s 

W P5 <1 

8 si S 



ra jg o 

> 3 a 

ft 



o o 



■o, o 



53 3 «X3 g SX3 g 

3-sS!r*ScSa° 

3&B^3a-s3a 



240 



CONCENTRATION OF ECONOMIC POWER 



fH 0> « C35 C< O CO 



^t~ r-oi 



fj? 



^ CD <0 (D lO O 



CO ^ ^ 



«^ «» «» «» 



00 O t^ »0 00 ^ ^ 
T-(^ C^CO Cfl to o 



O fh 



;0 1-' »0 CD 



^ 1-t ,-« CO 



fr^CO CO" 



)^ rH ^ t^GO .-HO» 



. r^ t-i w 



^ «* 






^ ^ 00 00 0Q( 



—I »o 



gS8 



g S; 



—1 rt rt N 



§^ 






,-HO 00i« 



?uD QO N 0» 00 to 1-t 





_- 




m 


^ 


n 


























* «^ 


«* 


v> 


Vi 







I »C 00 O 00 ^ -^ 

lb- e^ »c N OS 00 



t>00 ■^ '"' CO t^ ot 

^1^ ^ CO w 00 i-H 2 



S§ 2 



i-( t~ CO 



N o 



^ ^ ^ CO 



o»aa oooa 



c5o» 



S2 



^H CO I^-* 



t-H OS l~- OOCO NO 

P5 « ^ rt H -< 

CO o t- »o b- 

... . ^ 

S 3 00 « 



J5S 



— I r^ CO C^ «5 CO C* «D00 i-» -*f* lO I 

C^ CO C^ lO C^ t* 00 C4 CO UO C^ - 

Tj< O ■^ CO 00 CO I 

r-T c^* t^ .-T t-T t 

00 o N »o 00 e 



^ ^ ^ CO 



OS -^ 1-1 



^ M- ^ 




CONCENTRATION OF ECONOMIC POWER 



241 



o r^ ^^ ^ ooos W3 r-^ 1-^ CO f^xo M -^ to-" 



00 f-H 0> i-H OS 



OO* COOl 



0> »-l O OOS C« rH 1-H - 



4^ ^ 



i-H r^ 


MiO I 


' t-'^ 


t~-c 








^ 










ir 


^ 










































»"* 
















c^ 


Ol 












o 




N 




OS 


o" 




,-. 00 




?s 


^ 


o 


^ 


^ 










or 
















































«ft 


«» 


«» 


s 


«» 




M* 
«» 


«» 


««^ 


«» 



i-Hco cor- 



w r^ NO i-H i-t CO uo »-i N 



»c 1-1 dec tf5 lo eo (O (O 00 r^ r^ 



»0 »0 00 



WW 



t^ O t^ 00 w:c 

was wo> 1-f^ 



t^ lO ooo 



fH CO T-l Tj< 



-co cot- woo 



w CO 



lO 1-H 



lo lo r- GO 
w ■* w to 



• ^ wr* oot- i-Hco -^w co"^ »ooo r*w 



Ci 05 f-t CO 



w ^ 



I-H t^ r>. i-i I 



wco WW 1-1 r^ 



^i-t WW 

w.^ -«** 



w r- w< 



>CO Tt< U3 rH C 



rH r- M* T-< I-H »-H O »-H .-H 



4 uo C^l O »0 00 



■^ W5 W 00- 



.-H I-H 00 wco W OS rH t^ 



W .-H 



O ^ ^ -H 



CO O t*cp 1-H 00 



1-H fH M» O 1-h 00 



1-H -^ O-^ woo CO^ «OCO M< CO 



CO »-l CO W *0 WW 1-H t^ 



*d -^ 1-H 



OS»-H OOOi 00^ t^ *0 CO -^ 

1-H »0 OS I-H "^ lO 



lo »o w r^ w CO 
w »o woo t-i OO 



*C rH 



t- ^ 



So. 

•Si 

38 



^ ft ■ " 

el 

no 

o c S o 



.s 
'3 

• •05 

•o a 

ll 

a o 

q; O 



® > •• " 



» a 



ITJ t. 



^ b ° o 
H « 3 B a 

- o 



■S 3 *" 



*> a 

•S3 



soga o 



3^ 






Bg 






■g 3 ft-S 3 '^•S 3 

a go a o-oE o 
3 a- 3 E^ 3 a 



fe S 2 
238 



•H S 



S S 



• ••S§ 
w g o 

•2 3 9 

o. 

3 
03 



5 35-3 36538 . 
PQ g fe k:) 






242 



CONCENTRATION OF ECONOMIC POWER 



to C 



e 



^ 



O 

I 



en o M --I — I "O o05g QOr^ 



1-1 O 



£N ^ 



r-i </i '-I 



iO C<» 00 "^ (M OS 



O O C30 »0 r-« r^ 



O CO OO ^ -^ M 



t-^ t^ ^ 05 



9 a 

is 



C3 QJ r3 . fl^ a 



'S. 
"^ s 

■-Be 
" S c 

S o 






^ j^ X I. ,^ 

5 E S 3 E 



"So 



■o a 



to CD »0 OS 



1-1 00 C^ t- 



r-i lO 



CM CD -^00 



C<> -»l 00' 
r-l CD i-H C 



.-I05 lO ■* 



a; o 



S s g S S C 



:Z<K^ 



03 a p 

M 



ill 



" E o 



! E 2 



CONCENTRATION OF ECONOMIC POWER 



243 



t» 5 



« V 






»-! CT> 






^ ^ 



CO ^ •-•00 ^ • 



> — * M a> CO CO 






00 U7 o> 



o> ^ 



ec ^ 



?? P r* 






?i ^. 






■*p 00 oco coca «c cs CD 
i-H « .-(CO c^ ca M CO 



00 00 ^ CO 

CS CO O rH 



O CO « -^ 



CO CO CO 



-H 6^ 



^ ^^ — ^ --" 



oc^ Oi CO coo i-»0 co-^ 

C0*0 00 fO »-icO 00 (NCO 



»0 !-• f-l 



^ ^ c> 



-* O CO ^ 

M CO c5 «- 



49^ ^^ €«- €» €^ 



O <-H M »0 CO -^ 



8 ^ 



lO ^ CO CJ 



»0 00 CO 



Oi t^ »o 



coco 00 v i-igp 

M kO OS O 



t^ Oa CO O ^ ^ 



5 S 



^ <» 



^ «» ^ 



S Si 



O 1— M CO Oi O O (^ 
MUD i-iO P*J5 .-HO 



CO S 



a 2 



00 ■«■ «no ■- —I 



rt -< o 



^ «« «» 



a o 



CO o 



■eg 



; O ^ -H 00 



C^l M -^ >0 



?•? = 

S c o 
o: 3 E 1 






°iE o * S = 



J 'i: c ■■? o ca a 



2 B o 3 c o 
oas 5. 36 



a^E^e^E.^ 



O *J*3 *^ 
•r-E 2 £ = 2g2 rt S 



•SsEgaEiSSE 



se 



t< M .5 fa 



Q S 5 S a OQ ta 



^ (M 



jl o <-• C^ c>5 



O H H 

lA (ft b^ 



258846--40^-No. 15- 



-17 



244 



CONCENTRATION OF ECONOMIC POWER 



2g SS 2S gg §S SJ 



CJ V' » 



o -H 



s s 



•"I '-g »g 2g 

Cm oT CO ^ 

?S r? r! « 






3 CS « O CC 



SS 



S2 X 



2m 


S? 


r-co 


g 










CsJ" 


oT 


^ 




<» 


fe 


il^ 






ooo 


OC-J 


g 






^-^y 



S3 



i3 2 



N« >0« «■* OOg C^JM O 



S 2 8 



S 8 



§ g 



55 M '^ « Is. 

44 «• «• Ij "^ 



S? 8 5 

a s 'I 



-* ^ M»CO N ■« 



^ o 



^ o 1^ 

CO ^ -^ 






oic^ gioo «oo> Q^ 

^■"j" fir- ^cD ptr 

*6 c^i oa ^ 



CO uti « 






«& ^ 





"S? 


"^S 


00 


"§ 


QO 


i 


''s 


«l 


"i 


»s 


e^ 


i 


§ 


s 


§ 


S 

« 


3 






2 
St 


■^ 

s 


s 
is 


! 


•**• 

s 

^ 


s 


o 


^ 


i 




o 






h- 


M- 


•» 



fiPa rHiio coo ffO»C c^c-^ — 



C<IOl ■^N ^Oi OOC 



s =: 



t-- lO 



CM "^ 



a o 

0.0 

2 I a 

03 3 g 



;|8 



3 = 

erg 



-a 



a " 2 ; 
o S 






Sola 

3 a £-3 



as! 



h 

Is- 
Sa 






a§ ; aia ; .. a 



O) S 



^8 



-3° 'a° ! 

si||i!irs|aii.H|i 

M « ;? <! -g iz; ■< •o ^; -ii -g z ■< 2 ^ "^ 
< :z; S PQ ^ H 



ai 



'■^z i^Z, :■£?•« is^ ;§ ! 

;§0 ;§0 ;|o .go ;« ; 

!oigoaosa=||og=. 



.2 J 

«'3 
"3. OS 

g-o. 

■oa 



at 



a&a 



O Q Z Z 



3 8 SS S S 8 S 



s s 



CONCENTRATION OF ECONOMIC POWER 



245 



sg 


,_, ^f^ 


«— ( 1^ 






^ 


SS " 






1— 1 .-% 




rf 










1 b- M 








'~^S8 










i« 


















■V 




t-- 


O 






^ 










^ 






lO 


s§. 


M 


r^ 




tD 


cf 


'S, 






^- 


't" 


"^ 


!;i 




R 


a i 


: 8 


^ 










^ 


















* 








«» 


€e 


<» 


•» 




m- 




Si 




5i 






„- 
















































































i3S 














































































CO 


o 
















:o 




OO 1 


r 00 




S 


» 


f? 


5? 




t; 


t^ 




^ 


5? 


S 


o 




fj 


t~ 


a • 


1 § 


1 














l§ ' 








i^ 




































































<^ 


«> 








































































c5 












































i~^ 








O 


«^ 












cs 










OO 






^'■ 






fo" 








-^ 


^ 




t^ 


o 


'^i" 


to 












































































«* 


4^ 


*^ 


se 


^ 














s 


S 


s 








































































■rr 












































-^a 






1^ 


to 




l~- 








i^ 


















i-T 


o 


UT 




^ 






o 


»c 




.^ 


CC 


^ 


--h' I 




cc 


ti. 


t-- 


iO 


a 


r^ 


^ 






S 




«l 


TT 


? 


M 




; g 


e» 






























































































<« 


«« 


«e 










SK 


^S? 


Tf* o> 


S:-S 




fS 


gs ^ 


s 


^s 


(MO 


Sft 


S 


S 


s 


s 


?5S i 


i "§ 


«o 


■^ 




■—1 










«e 










o 


05 


7^ 




rt 


§ 














«r 




o" 


-M 




CO 






; 8 


































« 






























^ 


































































































«* 















e^o ^ r- 



t^ — < OC OS Oi OO 



— < «5 iMC 



CS O 00 (N •-" 



T-l CO 



OJ t- r-l 1-1 O *C 



00 CCOO 



<M ^ 



c^» CO ec c^ CO ^ 



«9- «^ «^ «e 



I ^ CI "^ 1-1 CD 



Tj« .-« OO ^c 



s s 



OOO <M ^ 



-^ « 3S 



0> CO CO CO 



CD M ■<*< f^ r-( ■■ 



!M — H 



C<» C^ *ft 



r-1 ^ 



00 0> OS t^ CI . . 



M OOi— 



Ob ^ 



a 1- CD 



^ C^ CM C^ 
«■ ^ «» f^ 



*S 9 

■OO 



feSoSEo 



■■is 



ISaJ^B&SSgc 



2 <» 

a.S 

<s i'Si 

ft "O o. 

■•a ;>a 









•2 s 
i 3 2 



o c 2 



S^3 

.2 a o 






q;<4' 



as 



? H 



,go;30; :E:^!":h'°; 

^ j-^l| al|jd|l|l all &s|' 
=1 all s s| a o B-S as b-h a s£ » a 

3 P w 2; H =- ^ K ( 

i CO -Ti- o CO r^ X ci = 



'Eg 

' 3 a 



sag 



?z<« 



.3 a 



•3 a 2 
0.3 a 



246 



CONCENTRATION OF ECONOMIC P0V7ER 



b- C^ » OS 




-s 



CO^'CENTHATION OF EGON<:>MIjC ROWER 



'NO i-< 



247 



OC^ r*L-5 CJCD OOJQ 






IM — ' 



i-i »o o 



Oi -H 



■ lO ^- Ol rH lO (DO OC f- *f lO 



-s 



fC c^ ^ • 



t^ ■^ eo o i-H u-j 



(O r- re «D 



F-H t-- 1-H 









^g 



IS 



w fe 



(O ^ 



<3>—l (NI- 



H £ 



2S 




248 



OON'CENTRATION OF ECONOMIC POWER 



& ^ 





?3S 


IC 


^ 


^ 'JO 


05 yi 


(M CO 


09'-0 


QC O 


l--^ 


r>. 


00 


lOCO 


CMO 


t--. 


t^ 







cj 




.-t o 


rt -»- 




m 


CO CO 








r^ 








CO 




"3 


X 


CO 




00 


^^ 


00 


■o oo 


■*T" 


OS 


Ol 


^ 


c5 


Tf 


CO 





_ 


o> 


•f' 


^' 


— - 


cr; 


^ 


^ 


cm' ^ 


00 


t-' 


,-h' 


c-i 


SO 


W 


^^ 


^ 


CO 


o 
























t- 




CD 


« 










09- 


44 


W^ 


<^ 








«^ 




Vi- 






CM 




s 


^- 


K^ 










^ft «- 




«« 








S 


^ 


a» 




132 


^ 


70 


o> ^ 


o -^ 


oo 


^ rH 


00 t^ 


CO 


gg 


CM 


•voo 


CMO 


f^ 


t^ 


•0 






6c 


1-IO 




0)0 


■rs 


a> OS 


o 




CM 









s 




■a* 


cc 


in 




-^ 




a. 


CO to 




o 


CO 


'-' 


OS 


00 




cS 


:^ 


oT 


5 


o 


^ 


tC 


cc" 


oo" t-" 


_^ 


K 


to" 


cm" 


to" 


T!^ 


^ 


0^ 




s 


30 










O 05 


Tf 






r^ 


t^ 


Tf 


CN 


8 


.-H 


^ 


•^ 


^ 


■» 


» 


s 


s ^ 


^ 


€^ 










<N 




^ 


—7 






















»— ' 


^ 


^ 




Ws- 


V3- 
























«e 


€«■ 


•» 




gJS 


C^ 


^ 


°§ 


CM — 


^s 


eoi--; 


^ r-< 


CO 


o 


S' 


CO ^ 


CMO 


(^ 


b- 


00 




'^ 




~* 


3> 


g £S 


3 


s 


S 


g 


g 


g 


s 


i 


,-f 


o 


jj- 


^•• 


Si 


s 


■3^ 


CO S 


CO 




5 


s 


g 


s 


to 

CO 


« 




5> 


«■ 


"' 


s 




^ 




«* «<» 




s 


€» 


» 




^ 


CM 


s 






































S5S 


o 


g 


8S 


r» » 


S| 


''g 


00 o 


■*f 


g 


§ 


to t^ 


"o 


8 


i 


s 






o 






re 












co 






n 














M 




















« 


s 






— ' 


'^f' 






00 to 






g 






g 






Oi 








« 






CM r-^ 


•«r 




^r 




to 


s 




o 






^ 




<^ 




69 «9 


«^ 


y? 




«e 


€/5 












































































«» 


























» 


49 


«» 




































CO 


gS| 


i 


i 


-S 


»s 




?5 


00 CM 


1 


i 


1 


•"g 


Clg 




1 


1 


N 


■■o 


00 


3 


c-r 


•N 


M 


CM CO 


S' 


IC 


oi 


sf 


« 


0" 


oc" 


oT 


00 


.■o 


X 


t~ 


«9 


OC 




00 o» 






1? 




■^ 


cs 




•o 


t^ 


§ 


w> 




Vi 


W 






















«• 










S 5 


€^ 




















































<» 


























«e 


a» 


«» 






































a'- 


s 


s 


-% 


SS 


2g 


«g 


« t£ 


R 


to- — 
CO r^ 


'1 


"1 


E; 


t^ 


to 




<» 


M 


■* 


—' 


c^ 




CM O 


■>»• 


r5 


^ 




CO 


CM 


^ 


CO 


^ 


im" 


<a 


crT 


ci 


^ 


« 


oo' c^ 


OS 


■^ 


C 


« 


Q{ 


S 


CO 


f^ 


o> 




■M 


a> 




«» 


oc 




OS ^ 


F- 






CO 


er 


■«l 






*i 


m 


'£■ 


fA 




fl^ 




© s 




*? 


«e 


«> 








> 


































«i 


€^ 
























«9 


«9 


«» 








^^ 














"""*" 










" 






g?| 


t- 


S5 


t^ r^ 


■<CM 


o-o 


t^O 


QC r^ 




>n 




■^ CS 


«o 


■•J* 


■* 


CO 








*-« »c 










CO 








CJ 


C4 


f-< 


eg 




t"» 


o 


» 


o 


'^u: 


t^ 


* c 




■* 


oc 


cZ 





» 


« 


V 


O; 


ff 


^ 


I^ 


CO 


^^ 


»o c^ 


S 


s? 


cm" 


g; 


0" 


00" 


^ 












«9 


9^ 


CC 


00 t- 




t^ 




K 





GO 








J2 


« 




•5ft 


«£■ «« 






«^ 


49 




c 












































































«(^ 


«» 
























QO 


m 


«e 




as 






















*| 


MC 


S 


K 


^ 


g 




























^ 


CC 


OS 




CJ 
























f^ 


00 


" g" 


00" 


oT 






























^5 




■w 


^^ 


o 
























«^ 


«*s. o 









c-f 




























^ 


^ 


^ 




^ 


























«» 


«• 


» 




















B ', 




































O . 












































































































2 i 








































































'S ; 








































































fcri ■ .. 




































a ;a 




































o- o 




































■o Is 




































■o ;.2 




































a . S 


? 


































" ; £ 


a> 


































to ' o. 


ce 






































































S l-B 


c 


































2 -3 


a 




























1 ■ 

d ! 


.9 2 




® 'S 
a :« 


8- 
c 


a 
















'S 






'a 


9 a 




•s ;s 


a 


_o 




a ; 


o 










<a 






X 


a " 




0] 










ce • 












a 








a 


1 ii 


s 


QJ 




a ■ 


04 










a 






c 


fa 


•OS 


a 


c 


C. 




a ■ 


E 




tij ' 






c 




'd ' 


.. S 


a o 


1! 

« o 


- o 


ij , o 






O 1 







' 








£ 


a 
8 i 


go 




■I'S 


a ;.B 


a 




6£ 

a 


.. o ' 


So 


ii i 


; 






-^1 = 


|c 


it 
11 

S 


^2 = 


■i|c 


a >- ^ 
■2x1= 


,. ^ c 


lu-^ 


5a 


£c 


> 4^ 

ce c 


•?l^ 


U. *s 

m 5; 


*J 
■Jn a 


Bi 


Is 




0-2 : 


« o 


^ c ; 


1- Jj -i 

f a c 


■^•2 3 
2 8° 


■Ha§ 


SiE^ 


^§ 


^§ 


to a 

en O 


■gaa 


ill 


g§ 


n 


11 




Sb 


M 2 - 


c a c 


g = a 


saa 


Income 
Am 

Income 
Am 


SE 


ga 


sa 






1 


•5< 

1 


c 




1^^ 




5 


a 


a 









2*^ 







CS 


ro 


'f 


lO 


to 


r^ 


00 OS 


o 


^ 


ej 


PS 


»#< 


u5 


1^ 


t>: 
























•^ 












M 



CONCENTRATION OF ECONOMIC POWER 



249 



^> ~ 






p> 


»-i o 






^ 


M 














r-l 


*^ 


OOQ 






























S 


^ 


o 






30 








OJ 




' ■* 


cc 














ffi 




s 


r^ 


!^ 




(N 


(N 


; - 


tc 


« 


^ 


f; 


m 


g 


s 


8 






































» 
























s 






e» 




l^u^ 






§ 




mm 


(N 


>., 






'^^ 






PJ 


OHO 


™ 


IM 


00 00 


"m 


^S 




"^m 


csg 




"ui 




a> 


>o 




d 


-« 


8 


to 




iV 






p^" 




oi 




ff 




iS 


o" 






■^ 








s 




























fi^ 


































)» 








































































































«» 











»0 ^ W M* C» CO 

^00 c^eo »-« o 



U5 Cl "5 « CD 
O ^ CO 



C^ f- CJ iC a ^ lO CO *o Ol h- 

fO C^ to -^ .^ rH O 



<o .-> ^ 



I 











•sP 








(D 


}^' 


t^ 


m 


o 


«- 


m" 


^ 




































































«» 


<« 


«« 


^ 














<^ 


«ft 







CO t- CO 00 
*«■«** CI CO 



CO to CO »0 CO .-^ CS M -^ Mp 

^r- c5cv( c5o Mc^ fC ^ 



(M ^ CD- 



SI— o>c 



^ CO 



o5 S erf 



•o-^ «— coc^ co» 
— -* c5'^ ^-^ cs^ 



S3S 



> r- M 03 CO eo ^ QOeo 

cc CD i-"^ CO o> i-Ht-- 



s a 



-- Cl CD 



-^Oi c*) eo — cs 



— CS COQO 



coo CO -^f 
C< CO CS C>l 



C* cr CO OS CD t; p 

^ a> 00 r* 



w ?o 



2 S? 



M< ^ 1-t 00 

^ 00 kO r-. 



■«-"*f CO'* f— ^ 

.- cc C-l Q t-( C 

"f 00 I 



csoo coco oc 



2S 



M ^ »0 t-H ' 



mN « 



oB 



■go 



•O N !-■ CJ o 






— « 



2f5 



o ^t» 



z; ^ 



^ fy> 






■§1 



Sosao: 
sagosi 



1« 
Is 



I- c! 

o a 

"a 



.2 5 









oB o- 



iiflliBSSa^sa-s 






•o a 



° « a a « a 

SSSBS 
^aa^aS 



w ^ a 

5^ a o 

HSfi 



2 B °-s ° 

s a a 2- a 



S H :z; m 



PQ 



o fl 



00 a> o -H 

— -H R M 



8 ?3 



{?■ a 8 s 



■a§s|2 

a Bj3 a H 



250 



CONCENTRATION OF ECONOMIC POWER 



2g SS SS ?SS ^ S5S ''s; ss 



to c^ i^--< 



40 ^ 



«0^ €^ ^ «^ 



« 2 



2 c 
» Co 

si 

8 « 

- »» 

« CO 



K 

a 
8 



2S ;2;=: 8S as 



ss 



:= ?j 



^ s 



82 



M « WO) 
»0 M W 



2 i 



2 U 



00—1 t--- 5»'* wo o «N — 1 to «-i 
— ie<5 .Hco «« «t~ 00 e^o t~ Moo 



o» r-i 



O O M S 

'-« ^ r-4 CO 



2R i;i S35 as S 538 

r- 5 r-. 00 t>- ■* 

§ s s s a ss 



8S 



^ -. 



oOM »-■* £»■>»■ eoco s C5<D i-ic* J3— I 
1-1— — Q Noo Ng 00 Mm rH M-< 



s s 



S§ ??2 



S; t; 



S =: 



85 



Tj» t* Q CO <D 
U3 OS CO 00 I^ 

t» «« «» «4 S 




S2 


■c 


a 




















■<J* 


CO 








o 




s 




^ 


fS 


C^ 


c^' 




















s 


s 


«fr 








,_^ 






















ff? 












:3: 






-* 




CO 










s 


^ 


?D 


>0 








a 


























• 











a« 



CO o — -^ 

— < €* 



CO 1-1 o> 

2 S S 






00 CO O --HI 



w^ w^ «e 



to 0» CO 






^- &=v 6© eO- 



Nco CO 35 lo 

M 00 t^ « 



s 



S; s ^ 



S 12 



«9 <» ee «» 



85 



S 2 



<C «5 »0 



CONCENTRATION OF ECONOMIC POWER 



251 



M-r n; 



to I- o>t 



CO ^ 









S e3 8 

«4 <» 



IS J22 



»-< ^? 



o5f^ 









2 S 






?3| ?5g 



rt -s<m «c 



ao« ooM 



coo OCM 



?) ^ 



— < *^ * — 



a a s 



SI IS 



2K ■"& 

!5 S 



S3S S55 



00*0 O ■* C^ M Or^ to ^ !>.« t^ C35 oo cot 

" ?S -<:2 -^§8 s s s -"i ^^ 



^?s 



^ e^ 



«^ m 



SI g 



Of cct 



Sg SS "8 §3 25 "-S -^g 

CO 00 00 w3 o (N eo 



00 :0 to Oi O O 



OO fOC 



;S 



3 8 






«»0 CO M 

c5o c5«5 



C^ ^ OOCC to U3 



>0 M 



SI 2 



s ^ 



>'i «» 



00 ■* Tl< -fj* OiO 



I CO CO-" 



So 



.3 
S8 



11 

■c o 



So 



•I 

•a a 
■29 

, 3 o 

' S) o 



if 
■9 "§.£; 



SZ 



a as 



, 5° 'ojo • a o ' ^ O.C-tJ ■!-, 

*^ p <-^^^ u,^-" uj,"^ l^^ Oi,^ &■"•« 

ai3as|a§|s2|a°| a 



rt; ?^ a !- a; a 



Z^ 



■^ S - 
°"2 3 



la 



^ Iz; 



:^l 



CO 



o 



8fe- 

e«ox: a 
•oa o 



f? a o 
2§a 

3 a 



•° 3 






5f a o 

9 3a 

•3 
n 



ag 



■g:^! 



9 '-■^ 

* a> a 
£■5 3 

.Pi 



^ M 



252 



CONCENTRATION (►F ECONOMIC POWER 



c^ w mi 






e _ 
e-o 

« CO 

o ^ 

g « 

8 

e 



»0 r^ 



O 72 



M-*" mn NO> •<»•» "Htj «3; 

1-1 «D ^N »0 CO 00 C««C fO 



<£> -H 



CO r-* 



— U-^ .^ CO '<*' 



) -H 05 OS e^ 03 



—.00 -^J. "5 C^ O »0 O 00 00 ^ :D 

^- to ^- -w- »0 00 — < CI c^ 

lO r-l 00 00 O «9 



— CO >oc 



o « 



"00 .<r "* ^2 coos ooc^ 



OS — . 



30 ^ lO 



us ■- 



« OS ^ to 
00 ^ 



«c: 






cZ 



•oS 



la 



)C0 cc o 
CO r^ 

^ CO 



00»O OS c« 



^ w 



a> o 






■■5S 



S2§ 

o a 2 



S 3 a a^ a 
§ I 



ca 0) a 



lao 
i = a 



T3_ 
CO O . 

i|li|§ 

3|i.a|l 



t!2a 



CONCENTRATION OF ECONOMIC POWER 



253 







ts. 






„,^ 




















„.^ 












OS 


*C 00 


»-H O 




C*l "* 










M* 








cc 






oc 


r^ 


o> 








o 


o 






" 




^_ 


OS 


7^ 




00 




" 


'^ 




~1 




o 


1 

6^ 




1 


«e 




o 

SI 


oc 




fe 


^ 


^. 


«. 










;Z7" 
















,^ 








cooc 




o 








•w c 






^ 


;c 








^ o 




t- 


,-<oo 


CO 


^ CM 










lO 


uo 






CJ 


o 






« 


■^ 


CO 




cc 


o 


*C' 








Ci 


00 


o 


^ 


cm" 


' oT 


oo" 




^j 


_* 


■£ 


c-r 












Vt 




v^ 






•^ 


CM 


CO 






^! 


oc 


5 


«» 




«4 






Vi 


w 


w 










CO 


























«9^ 


^ 
























cc ;£> 


^ 


^ 


I, to 


rHUS 


IN CM 


CO CM 




^ 


o 


CI 


o 






(MOl 


o 


a> 


rtiO 


r-^ tC 


CM-^ 


C-1 




<o 














Tf 




t^ 


ira 


00 


CM 




to 


o; 


s 


CO 




oc 


cr 


ur^ 


od" 


od 


r-^ 


od 


t~" 




CO 


tjT 


^ 


I c 






UO 






«« 




w 




to 












^ 


U3 


«^ 


«« 




«4 








5^ 


«■ 


^ 








Si 














~ 












Oi T- 


^ 


^ 


coco 


CO c^ 


t^ i>- 


CT! IM 






•^ 


o 


CI 






C^i J 






c^oo 


rt « 


CMiO 


«; 




Ol 






CO 








CO 


t^ 








^ 






-^ 


CI 


Oj 




t>- 


3 


^ 


OS 


CI 


oo" 


»>-■■ 


o 




rC 


irT 


c" 


'O 




CO 




o» 


s 


»» 


■«• 


S 




S 


00 


^ 


'_: 
















«* 






«^ 


^ 




«• 






c^' 


CD 


























a?- 


«^ 






























_,^ 












' 




^- 








t--l^ 




00 


CD lO 


COIN 


-9' !0 


•-s 










:r 






■•r CO 




Tf 


CO c^ 


r-ICO 


'tf* ^n 




XI 




C3-. 


o 


£ 




■^ 


lO 


00 




r~ 


>.'; 


CI 




*c 


■rr 


C7. 




3 




lo" 


Oi" 


^ 


o 


rC 


_r 


LT* 




w* 


•^'' 


to" 


to 












-^ 


«9 










CO 


CO 


ic 


'* 




r-* 


t-^ 




«e 






^ 
























«» 






m 


«^ 




«fr 


t-i 




8 


^ 






















^ 




























1 






























C^ t^ 






ocos 


C) 00 


o: o 


oo 




t^ 


^ 

^ 


oc 


o 


t 1 


og 


(N 


m 




c.g 


■OTJC 


-^3: 




■^ 


g 


CO 




^^ 


t-T 


cd" 


^ 


c*i 


CM* 


CD 




cT 


od 


ci 


to 


Oi 




°g 


<^ 


S 


^ 


SI 




?5 


ro 


tZ 


CI 


^ ! 


Tf 


;;;;' 


"^ 






«. 






«9 


*^ 




« 




1 




6^ 
























1 


C^ 00 


at 


r^- 


CO 00 


■^ ^ 


5§ 


oc o 




CM 


^ 


oo 


CO 




1— -^ 


o 




ioio 


C4 CO 


o; 




TJ* 






l/^ 


1 




CO 


co 


CO 


t~ 




CO 




CO 


O- 


c^ 


CI 


1 


§ 


CD 


CJi 


0-- 


t^" 


CO 


C) 




•^" 


'^ 


ci 


l>." 






So 


CO 










to 




c 








lO 


M 


4e 


s 


S 


Vi 






«^ 


u 


Vi 






<N 






















1 


^ 


























1 
























































-^c^ 


CO 


o 




com 




-hO. 




o 


S 










(X-cr. 


00 


lO 


co-^ 


c^c» 


^5 


^ t^ 




55 


QO 


!£ 








t^ 




CO 


o 




CO 




en 


c^ 


-* 


CI 




n 


o 


cs 


c^" 




cs 


^ 


1^* 




tC 


■^ 


C*^ 


o" 






t^ 










<o 




to 


^ 


■ s 


IC 






t-^ 


o 


£1 




«e 


u 


«e 




« 


^ 


<ft 








co' 


























^ 


</~ 































;;:;^ 








' 








^^ 








OS CO 


r-. 


CO 


04 *^ 


r^ ^ 




00 (£ 






■o 




•^ 






a r- 


s 


O 


t^iO 


COrH 


oco 












o 






c^ 




IN 


O 


00 


C 




"^ 


s 


C4 






" 


o> 


^ 


oo" 


(sj 


i 


od 


eo" 




1-^ 


o 


— T 


o" 




« 


CO 


i 


J? 


SI 


|g 




Si 


«^ 




s 






^ 


5i 


"" 






















Bi 


1 


i 


S5R 


■O'Cn 


g| 


CCCJ 




s 


1 




00 




„ 


s 


;H 


8 


i 


e^ 


sf 


s 




g 


s" 


^ 


s 






05 


r^ 


g 


s 


SI 


«« 






g 


& 


M 






^ 


Si 














^ 






^ 
























1 

•c 

i 

ce 




.£ ' 

% '. 


a : 

O ' 
















in I 










•^ 




•e ■ 
















W ' 










£ 




c ■ 


u • 
















« i 










s 




cs 


c : 
















s : 


a 








o 




«> 


•a 


n 




s 






s 


a| 

8§ 


•B.§ ; 


.1 


P 




g 


§ ; 


o , 




'3 






'S 


5 c ; 


E 






■«^ > 




d 




0] 






03 


la : 


s 






0) : 




o 




a 






c. 


c o. 


c 


& 




S ; 

o 


S ' 




Q 






a 


ffi 


•OS ; 


e 






£ 


ic 




o 




a> ! 


o 


is o 


C9"3 ■ 


^ c 






Zi 












a ; 
8 ; 


s" 


C3 " 


•r. o 


H 




a ' 


c 


•5 






» o 


CO 


mo 
f Sp 

C8 3 £ 


« 3 E 


c 
c 




£ J 


2i ' 

o *^ 


1- 






8 


S E o 

s 3 a 




■2 c 
■eg 


11 


ci c 




aa 


a 

c 
o 
c 


c E 


sa 


8 
a 


a 




o 


3*^ 

o 




1^" 


1^^ 


(5 




r 




^ 


w 


CO 


■w" 


m 


CO 


r^ 


cc 




OS 


^ 


„• 
































-* 


•"* 




Si 



264 



CO>X'ENTRATrON OF ECONOMIC POWER 



o a 

"* c 



1^ 



a 




rO 


V-, 




<5 


e 


fe 


$j 


>o 


S5 


i; 


':?>^ 




K 


V 


Sft 


ft<-o 


s? 


^ 










« 


ff 




S 



Si 






yi 



i 

-1 
1 


10 

($37,010) 
$11, 500 
$162,000 


o 

if 


3 «» og «g -= b-g 

^ — t^ h- o to 


t^ 00 t^ --H r^ 11 


$482 

$:i 
$22 

$1 
$104 
$166 


to ■* TO 11 

SI a ^ : 1 

^ 1 1 


1 


?> "S ''S 


1 1 


O -< « !OC2 ■«■ >ra too torn 


coo t^ 11 II 


X Z "2, 
S ** ;S 


S 1 
4e » 


-H -M t^ t- ,-^ Oi 

S S S •^ 2 2 


2 § i i i i 


« 






1 ^B ^B "i ^§ "i 


?3to « 11 11 


« 2 1 




$1, 478 

$24 

$91 

$41 

$324 

$365 


O) to ■ 1 11 

S s 1 i i 


- 


^ r^»o ^55 


s 1 


S g5S SS 2S; S2 S2 

■<*' c^ t^ -«»• ec 00 


^S S S 1 1 


S ^ n 
— » «* 


ro to 
to = 


$1,680 
$23 
5100 
$51 
$355 
$406 


S S 2 11 
i 5S « j j 


to 


1 "§ '"°1 


3 S 


04 XtO ■—'OS CD^ COX t^t^ 

5 "g ''g -^fS ''^ -^s 


?| s "i "1 


§ S § 

» ss s 




CO CO to OS to to 

J - S - 1 I 




iO 


Jg O 5> OS O 


04 M 


i ^g ^g ?5s sg s| 


04 X ■^ II to »0 
OCD t^ II »^ 


($122 
$446 
$778 


2 i 

5 5 


$3,411 
$45 
$174 
$46 
$504 
$550 


§ ^ i ! « 
«e - 11 

«» 1 1 


•d* 


O ?0 -H 


CO ;o 

S 53 


S "- S=5 c-.jr tog togj 


^1 i 1 "1 


($302 
$632 
$781 




$3, 811 

$54 
$166 

$62 
$488 
$551 


-J-- (N 11 
^ .. 11 

aS 1 1 


" 


,529) 

23 
131 

11 
600 


S 2 


1 s^ ?:s ¥ss ssg g§ 

M t- t~ lO ■# O 


to CO OS Oft 


($309 
$886 
$809 


si SI 


$4,298 
$45 
$219 
$49 
$480 
$530 


$520 
$1, 270 

$4 

$11 


M 


($451, 429) 

32 
$851,260 

13 
$890,580 




$4, 887, 200 

40 
$09,411 

87 
$288, 510 

28 
$70, 610 

93 
$631,935 

93 

$702. 545 


98 
$419, 066 

$1,410,121 

1 
$180 

5 

$6,120 




($640, 05V) 

42 
$984, 060 

16 
$894, 914 


i i 


$5, 319, 904 

47 

$42, 070 

86 
$92, 181 

23 
$53,609 

111 
$619, 310 

113 
$672, 919 


105 
$351, 955 

$1,117,055 

9 
$7,975 




Business savings: 

Amount _ 

Funded debt: 

Number of companies 

Amount 

Preferred stock: 

Number of companies .. . 

Amount-. _. 

C'ommon stock: 

Amount 

Total capital stock: 

Amount _ . _ . . _ 

Total capital: 

Amount 

Bad debts expense: 

NuTubor of companies 

Amount 

Cash and equivalent: 

Number of companies 

Amount 

Notes receivable: 

Number of companies 

Amount 

Accounts receivable (net) : 

Number of companies 

Amount 

Total receivables: 

Number of companies 

Amount 

Inventories: 


Number of companies 

Amount . 

Total current assets: 

Amount 

Nontaxable investments: 

Number of companies 

Amount 

Stocks of domestic corporations: 

Number of companies 

Amount 


2'2 = 


2 2^2 2 S S M ?3 


cS ?5 8 



C<>NCP:NTliATrOX C>F ECONOMIC POWER 



255 



od <3> I--" 



lO o tc oc ;c O 



<*^ ^ 



(0'»»< ^ 1— .-( 



»0 CI (N C^ CD O - 



2S5 



ci 3 



^ W W CO i-l - 



« .-I 






fs8 



CO r— O CO O 



CD i-« — < 



CI CT- cj rc 



gaos 



o — ^ 



C4 -^ 



5^ 2 



»oo c^ o »o 



r-i W -^ -f CD 



Ci »0 ''T r^ 



O 03 00 



S; i: 



t^CD oo^D 00 f* 



»0 Ol 00 00 CS C 



--•CO "^oc c en 



^ <© 1-H 






»CC^ CI o 



»-i OS CS TJ« 00 CD C 



'S i=r, P?3 - P:- 



^^ «^ «:► 



OS CD OS «D O CD — 



S 2 5 ^ 



-r -^ c^ 



S5 



^ 00 -H O <N 
1> CD ^ CS 



F= -§ 



QO Oi <N 



— «^ ™ 



ceo 00 rr 



— 00 — — 



— — x 



C4 iC 

^c5 






g C £0 

iliili 



= i i i E 

■5 '/^ ■< s < 



II 



^ C X. c 



C c 



§5 §2 § «|§i-£§sr-^ - 



C.4: = 



^ C C 



w G3 " 

•^ >^ ^ 






55-E5-S£ = 5-5 = £-=£ = = £ 



? " J^-^ 5-5 









c -i ^ 






3 o 

nils 
£335 



256 



CON'CENTKATION OF ECONOMIC POWER 



■S o 

:§0 






« s 

as S 



S 3 



3i 







4. 


; »/ 


r- o 












,_^ 
















i r- r- -o TC (O *r 


■ O O CO 'f <N t~ 


i ""S 


t^ CO* 


M ^ C4 




1 t- -N QO ?1 '^ 


1 c-1 r- « 


r- 


^ »o 








-■ 00 X 




CS 


00 r^ 




sT - 


o o 


" ^ - &^ 










o ' ^ - 


CO = — 




■0 


CO 


i.s"a<3 




^1 ^ ic ^ C-l c> 


. in ^ 


I «^ 








<»*?•»- «» 


' «► » 






"'S 




1 ^ 

1 


■5^ 
























« ro t^ ■N MI^ 


1 •*« -J*?! C<IO 


10 






5!_ S S 2 -^g 


; "§ -^S 2 


--s 


cOca 

c^oo 








■ . . «e 












O CO CO 


O OS ■-' 


I CD 


CO 






3 S ^ ^ 5S 


1 r-1 Tf 


1 ^ 




cs 








^fi- 


V^fA 




4^ ««■ «» ^; 


1 «^ 












<» 












1 O O « ^ O -1* 


I 00 OS 00 CO r^ o 


p t^ 


OS X M t- 


A >n-a* 






m o o "; «« 


1 -< -1< -I -H f- 










I- OS -« O OS 


CO o » 


J a> 


tH 


10 .-* 




00 


cf "o" oo" rC o" 


i -f CO" ^ 






00 co" 




•^ O CO 00 "O 


. CO r~ 






ES 






-^ CD (M ■* W 


— 99 


<Xr 


«« 






^ „ 


" co" 












» «> 


> «^ «» 










1 












o « ? ■* es5 S cicq (No6 *^o6 


\ mS 


«o»-i CD CO cor* 




«u5 rt rt .^in 




tcctoo d> •<(< o — Si 




OS 


•— 1 CO 




,. ec t^ ^* (M* o ^ »o ^' (^ 


1 -^ 


cc" 


ii 




f- >* - 


CO t^ e-i «. CN (N «» 




OJ 




■■c x> ^ <z> — £2S"~' 


^ 


6* 




^ ^ 


^ f" 










e6 a» «» <^ 








_ ^ 


CO CO — C^ ^O ^ OS t^ OS ■^ S" 


OCQO 


5f: ss s§g 




?5 c 


00 S ''" S 5 """o "S "^ « 


. Kt^ 


i 


« a 


1 t^ 


■»< 


— ■* 


<o ■-:" S 2 ^' S S 9: S 2 


1 


00" 


81 


a 


; ^ 


U 




M «• M CO 








S 


«ft <e «J «e 








s 
























.s 


1 -a- M 00 M -. t^ 

I ds <o o a> »oth 


1 lOCO OS ^ ^S 


i SS 


SS ss? s;5: 


i 


1 OC -1 O 00 o 


1 00 O CO 


Oi 


oo 


rtCO 


*^" c^ 


CD -^ CO 


1 M* 00 CO 

; 3: S 8 


' 0* 


tc 


OSO 


•^ o5 f 


»o OS o 




CO 


OSt^ 


^ 


00 M ■«• I^ C< 




v^ 


— M 




- . «0^ 


69 «» 






»?«» 
















««««■«*««• 






















-* to >o M »;.-■ S 3 1- -co —S 
•vi^cooo -- cc r^ 00 ^ 

-4, — " PO of OS O* <N oJ OS 


g§ 


S.t S5 S?5 






CO 


000 




1 co" 


IC 


gs 




; ^ 


lg 






^fr e/? tf* 






^^ 




] ^ «S m iS 
















I 












1 « <c 




Osf^ CO cp CO OS 

. cog cS5 -^g 


1 OS ^ 


coe^ r^ r^ ^co 






M — 


CO OS r* t^ 


, <CCO 


t^-* (N'T: 40-* 






•OS - 




eo 


OS 


CO CO 






O I^ 


oo" eo ^ 


' co' ■^' rr 


1 os" 


»K 


«oo 






S or 


C^ lO CO 


. r^ -^ r- 




or 


Ost- 








Tf r- M 


Tf CO <» 




■» 


-. •«• 








«9 


» ■y» ^-^ 






^6% 






m" c** 


!^^ 00 












w w «» m 






















o o »o ^ M»C ^^W OSt^ 00 1- coco 


■ -v 


00 OS -^00 ■»»"<*• 
0800 Nr^ t^o 




?5 oc 


C^ -i 00= t- I-I^ t~00 r-OO 
CO 00 CO ««• f< -H lO 


' oor* 




00 = 


CD 




cooc 




g! rt 


tC OO irT oc 00 ^ 


' os" 


-*^■ 


-J-c^" 




?> CO U-. ai t~ ^ 




OS 


ceo 




OS 1- 

1 


Z' o: ^ S S S 


. «. 








1 CA C 












1 ^ "" 


» » 








_ - 


— < CO •«*• CO 


1 OOO OCI 00 00 

; °=^ *!g -S 


! CD ^ 


F- CO t^ CO »Ct^ 




N X 


OS tl OS lO 


i OSIO 


Og CMOS t^O 




c •-- 


-* JJ o 







OS-D" 




_, OS C* 


00 g" OS 

O ^ 00 


I iC" W^ I—" 


' co" 





Vm" 




^1 CO ir 




»o 


fS 


^ OS 






I ^ s *^ 


«• 


«« 


ss 




1 rf c 


— OS 












j €A 4« «« «^ 


















































'■ a 




































■ o 
























^ I I 










oi 


' a 








^ 


























Q. 


■ o 


.S ' .Ss 


1 „ 




« 




..s 






'«g 




J ; w ; 






i 


c 


:'o 


1 ;aI ;|I 

E ,£e :1s 


=^■5 


3 






'S ; 'S ^ 








;-3 


2; ca 


Sv 0: 




CD , V as 








g 


a 


2 o. 
cE 


en C 


11 °- 


-T" 


S 'Ie ; 








J-' a) 


^S 


|E 


;-cE 








1 

1 


a 


c '2 


••8 '.^d i^sS 


SS 


•c p 


|s 


[■&Z 


c 


«! 


I 
1 


§ 


1 :-^ 


52 o '"Pc ' c'c 


•^"0 


"•c 


Co 


'. c«'= 


t: 


S 5 t'B'^'^' 






sill||l||ll|ll|l||l|| 

3g'3ES23aS3ES§gaiE«§Eg3 




*::: 


S o« 


U. C r- ^ 


E§3i5 


= B = = 


s 


*<;-3-<; 


<-^z<-^ 


Z<=Z 


«< 


»j 3 


C *!i 


3 




, aj O 


s: o 3i •- o cL c5 ce 







1 


=-.0« O O « O r- 


'^ H 




I tW CO 


t^ 00 at c; '-• c-i ci- Tt- 


i.'i <£> 


^^ 








T 


■* 


i? ^ 


•r uM 


IC 




tC 




»o 




UO 






lO 


1.-5 







CONCEN'I ffATlON OF ECONOMIC POWER 



257 



-rcc 
















"^ 


i^ 


^5 




t>- u^ 






-.OT 




=i 


^ 










cpo 




""it 








. -T- 




COOT 


1 


c 










'§ ' 






r^ 




n 


"'^ 














. 




(= 








1 & 


OT 


cr 








Cf6 


S ^ ?^ 




t- 




^ 


2" 




5 










-»J< 




s 












</> 














(^ 












«» 




^ 








f^ 


















«^ 






«» 






«• 


^ 














































c.« 


»o ic 


■'■s 




r- t^ 




2S 


«;2 




^ 










"1 




oog 








; "S 




o>o 


PO 








r^ 




00 c 




r^ 




t^ 


<o 


















CO 








2 




CO 


(X" 








c 




? 








^' 




^ 


oo" 




c 










^ 




r>r 








' «ft 


^ 
















?^ 
























"^ 




fA 












5 








«/» 


« ^ - 


s? 






^ 




s 








■^ 


















^'5; 




^ t* 


Ma 




00 <c 


<D5 h- 


CO r- 




C^l Tf 




^K- 


*C 1^ 




O"; 










CO O 




^ 00 








I ICOT 




co^o 


— o 










5 


r>- 






CM -^ 






s 




(N>r 






















' OC 






'^ 




CC 


r^ 






? 




Ol 




O 














»o 




CO 








s. 




iO 


If^ 




rf' 


■■c 




o 




c 




ca 




t>^ 


^ 




Ol 










O 




o 








1 «^ 


>o 






«■ 






1/2 












CO 






«o 










CO 
















«/» 








V- 


O^ 6<^ C' 








<^ 




















^ 




























^ 


«4 










V 










s 


















l-C< 




fO<C 


"S. 




^S 


COC^) 


r^ lO 




r^ »c 




OJCM 


cot- 




n on 










I>ijO 




■^co 








CO l^ 




oco 








CO 




a 




o 




CM lO 






■^ 




MOS 










r^ 
















cS »o 


r^ 




f* 


o 








c- 




o 




C^ 


o> 




c> 










''^^ 




'^oo 












d 


o 




h-' 








r* 






b^ 




<o 


CM 














co" 




CO 










•^ 


Tj< 






















■^ 


t- 














K 
















9& 






<^ 






(^ w 






CO 










s 














«& 














« 


















W9 




^ 














€« 


















eo-- 




•^s 


,,,^ 




^2 


eo ic 


00 "g 




Tj« c*r 




z~^ 


icoo 




O -H 










-r Oi 




cooo 








1 OS cs 




■^ .— 


ecp 




c 


iT 






CM«3 










COeo 


l-" I> 




«CD 










—ir^ 




e^eo 








1 -^ 




coo 


t^ 




'" 






"i 


»o 






■^rt 




iC 


00 




M 










-**< 












, ct- 




00 


w 




erf 


« 






q 






o 




tc 


--T 




« 










c§ 




tC 












CM 


CM 














« 








r- 


r>. 
























i S& 




s 






S 








ri 

«? 




^, 




^ 


^^ 




i 










SI 




s 












«« 


^« tf. 




^ IC 


o>c 




^ ri 


»0«5 


J,, ^ 




Ol — 




-^O 


2g 




CMt^ 










»ca> 




COi-< 








1 »— ( ■^J 




fj" -H 










^c< 


"S 


"S 




u:) (-* 








iC <o 














coo 












-rj-t^ 


l-» 




cr 






ai 




o 




CO 


o> 




t^ 










M 




CO 








u- 




-fj' 


C^ 




c^' 


-H 








ir; 




CO 




oT 


■o 














ccT 




ot" 












eo 




«- 


=^ 




«: 








CO 




OS 






<x 














CM 








• ^ 










^ 




<» 








■* 










r^ 










Tj* 




<« 












«» 




















«s 




4& 


ee 




« 










*» 


















r* t^ 




" r^ 


N05 




CMot; 


■sfOC 


lOOO 




OS «D 




o»o 


— OS 




CO lO 




„ 


^ 




OOft 




^ CM 








»oc 




00 -< 


^3 




Oi 


•^n 




coo> 


CM CM 




-C(0 










yScn 










M»-^ 




■^ O 












^ Tf» 






re 






m 


•^ 








00 


o 










c 




o 
















rp 


S 




S? 








^ 






g 




Ol 


g 




s? 






I? 




g 




CM 








1 «> 


cs 






























OS 


























«4 






— 








m 


V. 




^ 




^ 


« 














«^ 


















1--^ 




;DC< 




t^g 


QOl 


a: t^ 




CI ^ 




^co 


CO iC 




(N-f 




p- 


h- 




CMtj< 




— — 




CO -^ 


' lOcO 


CO CM 


"'S 














oi -^r 




t^oo 






CMt^ 




r-os 






«C 




CM CD 










1 r-> t^ 








CM 














■^ 




o 


lO 










u- 




O 




00 




lO 1 


• O 


"'S 


S 




^ 


c> 




,qi 




a 




CO* 




co" 


CO 




t-^ 






cc 




CM 




od 




-H 1 


i CS 




CO 




««■ 


CM 




Si 




^ 




s 




§ 


s 




c; 






s 

^ 








SI 




»9 . 


I *^ 


s 










































































«» 




































S| 


/ 


'^s? 


«s 




Nh- 


o>t^ 


rt «o 




(NO-. 




moo 


"§ 




»/; i^ 




u- 


'Z. 




00 00 




iOOO 




00 lO 1 


; ^g^ 




wio- 






"§ 


«o 


cc»r) 




OS ■<»< 














OT 




C^ 00 




■OOT 




O' . 


■ CM •< 




COGO 






^ 








o 








00 












r- 












CO 








•^ 








M 








c-f 




oo' 


q" 




CM 






OT 




CM 




ui 




8 


I »r 




TP 








? 




c 


l>. 










(N 






0< 






Tf 




CO 




|g 




«e 


CM 


«< 






«e 




s 


<e 






s 




SI 


Si 










V 




£e 












ifr 










































































<» 




































1*-^ 








ss 




(NCI 


CC OT 


^,^ 




(NIN 




CD t^ 


MOO 




OT t~ 




»■- 


f 




I^Oi 




'<**00 




>r. 1^ ; 


' o> ■^ 


— OT 


i^-^j" 










(Me< 


rfto 


-rr t^ 




O OO 




'^S 












CO ^ 




coco 




' iC 1 






t~t~ 










o 






o 


r>. 


















u~ 




Oi 




tP 




00 . 








(N 








t£ 








?! 

oo 




8 




to" 


oo" 




CM 






•^ 




^ 




ci 




^ ' 






—J" 


C 








»° 




% 


i 






5 


SI 




0( 






5 








IS 




*» 


! ^ 


a 










































































«« 




u 










s 












































































































Vi 


























? 




















i-c ; 














































s 












































M 


c 














b* 
































^ 




T 


g 




.2 










.2 i 






s 










■c 


-2 1 
























a 

a 


























€ 




















a 
o, 
E 
S 




5 


a 


<u 


c 


'S 


a 


a ' 




C ' 


"S , 


•; 


c 


C 




C ' 


90 


C ' 




a 


T3 a 


:|1 




a 






a 


<3 


IC 


C3 




c 


03 




03 


« 




03 


n 








ca 




C3 




OJ 


a> 83 




o; 






c. 


c. 




a 


a 


a : 


c. ; 


Q, : 


q; 


a 


a 


c 


' 


= 


O. , 


3 
■c 


o. ..^ 


ft 


"S o- 


•c 


ft 






2 


a 


i 


o 


a 


a 


'5 
c 


a ; 


= 


a : 


a : 


o; 


a 


3, 


S 




1 


a : 


a : 


i 


a 


|s 


q; 


a 






c 


o 


o 


8 


o ■ 




c 


O ' 


o 




c 






o ■ 




O ' 


3 


o 


•a o 


(U o 




o 




ir' 


u ■ 


o 


3 


"o 


o 


O ' 


fl 






« 


o 


1 

o 


t 




t 




■o 


O i 




■a — 


' o:_ 






c 


'o 


■So 

O I. ^ 




o 


o 


n 

03 


o ; 


T3 

C 


"o ; 


1^ *^ 


c 


o 


c 




"S ; 


« 


1^ -^ 


o 






■c 


o 




i;£ £ 




iE 


S^£ 


C 


11 


l^^S 


&^§ 


<v 


•2 = 


:eb 


g 


EB 


1=i 


c 


(«■ 


Is 


oi 


ig 


s 


|Bi| 


i^§ ! 


a E c 


c 


S c 


T- a = 


M E C 


was 


» 


a o 


: 


a o 


a o 


£ 


a = 


P 


E 


c 


t 


a o 


^ 


a o 


a o- E 


02 a c 


cc 


a o 


c = = 


3 £ 


III 


c 

s 


:z<: 


.2J 3 E 


.5 3 = 


.c 


3a 


3a 


..SB 


3E 


C3 




E 




3a 


ti 


§8 


CS 


3Eo3 


e.2 3E 


2 


3a 




o 

> 


'/■■,< 




o. 

3 


3 




:?-< 


E 

3 


'z<i 


§ 

J 


o 

< 


I'i'^ 


a 

o 


1 


-< 


c 


z< 


C 

£ 


z< 


73 


03 


i 


O 


'4.< 


2? 


?: 






3 








s 




o 




s 




■»r 




3 


s 






£ 






S 




ot' 

CO 




d 




r* 


K 


r^ 






1 



258 



CONCENTRATION OF ECONOMIC POWER 









A> 


■s 


rO 




CO 




^ 






<» V 
^"^ 



s-S 



S05 







<DO 




g 




S N 


-^1 




01 


00 c^ 




ir 










'■' 


1 i 






10 






' d £ u 


(N- 


CO" (N -T 


t^ 


^f 






=- cm" 







cx> 




»» 


SI g SI 


CS 


« 






M -»< 






s 


c 






V- Vf 






■* ^ 


































m 






















cor^ 




c^ 


■«>CO 10-* t-T(( 

8 p: » 


<Ng 


•«< w 


r^ CO 






w- 









s 








r- CD 








^ 






S CJ 


I— ' 


CO CO 00 


CO 00 






a 





% 


o> 




s £ s si 35 


^2 


05 t^ ■*'■ 


2" SS 






§ g 






8 


CO 




«e^ 


s s s 


€» ^ 






«9 


































(» 






















2g 


C^ CO C^ 05 OCO Tf CO 


*o 1-1 


rt N ira 


?< 






■MJ 













i^ 


— « Ti< 


















CO »o t^ I-^ CO 


»c 


Tj* CO 


s s 






£ 









CO 


c 


oT CO CO 00 


^ 


0" ci>" cJ 


t^ t^ 






10 tC 




00 


U3 


CJ Tf 


«9 e» c» 


CO 


t- CO CO 


rt 






•* 00 






(M 


00 «» 


</> 


6« 6» «■ 


» » 






■yr 




























«» 








c^ 
























«» 


e« 
























^ 05 


coco e<it~ OS w 


00 <c 


<N to rt 


CT. <N 


M Ti< IOC 


) 






^55 


s § -s -5 -§ 


■^ 


« g; g 






c 5 








C*3 


00 


t~ 


CO *? 


CO 






oi" 






us »o cf 


iO 


»c 0^ CO 


ui <D 


c5 oc 




r^ 


00 


^ (O l-l --H 1~« 


^ 


56 CO 


f. — 






01 


00 <^ «^ <^ ^^ 


w fe aj 


s» »» 




00 
















^ 






^ ^ »» 






^ 


S 


















^^ 


»o « 


coco CDOO CO M 


iCO 


o> CO t^ 


^ 


> CO 


CO -1 r- 1^ 






tP CO 


c> «o cc OS .— ' to CO 01 




--• C» C-4 









• M 






■«< 00 to 00 CD 


w 


w ■* -fl* 


»o CO 


^ CO 




i>r 


c^" co' TjT .0 r-T 


iC 


c^' rC i*r 


-r 00- 


es ■* -.' 


<c 


r- 




c^ 


■CT- W 


01 CO 


■* CO CO 
* CO CO 


*s ■ 






^ ^ Se 5^ II 


€^ 




V 


> «> 














S R s 






«e 






i»" 


r* 
















QD 




«^ 














«9 


^ 
























1 




















to 


^i 




M <Mt^ »OM OCM 


t^<N 


CO CO — 


s § 


cjc t~; 


> «^ 


j= 


CO OS "^ OS »-' Tf -^ ^ 
CO M CO »0 04 





^ s s 


S ? 


i g 


u 


00 


CC 


to" W2 0" CO 


r-' 


10 c< 


i i 


cc' -^00 


as 


"5 S 



2 '^ S ^ Si: 


€e 


01 »o to 


SI ?5 S 


>< 


TjT 


0" 










^^ 


«» 




«» 


















k/^ 




1 


_^_ 












































ss§ 


CO ri 


ooo 000 tcej 


00-^ 


iO iO t^ 






co-^ £»= e> 






CO CO' t^ 'tf' CO •— < f- I— 1 


r^ 


S ^ 




■^f 


!>• rH 2r 








CO 


^ -SS ?3 ^ -i 




CO CD 


IN i?: C^ 




•* 


8" 


-^jl' r- 


CO o> 
--^ «^ 


i 


iC CC ^* 


g g 


— s s 






05 


Cl c^ 


— se «5 




C) CO 














. «^ ^ 




^ ^ -^ 


^ <» 


^ v> - 




% 


t^ ^ 










' ^-^ 




S 




1 


5^ 














r- 






00 CO 


<M C? coi;D b-CO •i* W 


OiCJ 


S g g 


CO I^ 


c 


«= t^ 




1-HU3 


M to OSt^ TfCO OS r-l 




ic *o 


CO .-J 


■ Cl 




WO 




cs 


c^ t^ 


CO 


W Oi <M 


r~ o» 






cc c^ 


g5 S ?S l§ f: 


cT 


(N "O' 

■*?- r- CM 


00 — 


g ?3 § 




»c 


-. SE K 


» 


^ s? s 


SI s 


^ g -I 




ig 


s 








w- ^ W 


^ 


' ~~' 




s 






^ 






































S2 


iC . CO OICD ■^CO Tft-* 


OCi-H , 




CD •» 


■x<oc — -^ ■«■ 




■^ 




Mrt U5CO " t~ 


■a<' 


S 2 S 


CO »o 


i>7 (NO> CO 




«ro 


OS 


-HOO 10 -hN 


■* 


CO CO 


00 C CO 




^J S' 


»0 Tf 


03 — " -* 


■M- 


cr of co" 




t^ 


C^' <N CO 




CO "" 




C^ 




a t~ 


S-. X 




1 T 


T 


c 


rt S £ 


m 




s ° 


»> ;£ 


<?J 










«» 




w © J2 




4% 









u- 
















>o 








c 


^ 








«ft 




<^ 






S 


«^ -^ 










































t^»r: 







Kg SS Sg 


ost^ 


S ? 8 


00 


CO S'-C 








ot^ 


■«* 








t^ 


.0 ft TT (M 






— 


c 




•-H 


t- '^ 


t^ 1-1 


01 "O 






8 






tC 00" 00 


cT 


cc" 0" --<" 


oT 00 ' 


c^' o> -T 






c 


oc 


00 «« 0-- 


^ 




00 (N 


C CI c 






^ 


s 


oc 




» 


ic r' CD 




01 


" c; 
























</r ^ 






01 


■* 
















CO 






» 


cs 






09 €^ ^ 


^ «<> 












^ ^ 






"'^ ^ S-' 




' — ' 








■ 




















2; 


















































a 


















































-s 




a 














































a 























































£ 


Of 












































t-; 




a 


■^ 










































— 




■o 


E 
































tn 










1 




•0 



































03 










E 





B 
C3 

























S : 






0/ 


■M 




.2 J : 


£ 



n 




k 


c 


a 
c 








■r 








: 






c 




5 ; 


'3 


^- 




5 


C3 


cc 








B 


'c 






CO 






CS 


■cE ; 
•08 - 


CX3 


















« 


C3 






a , 

E ; 

p 




V 


0. 

a 






a 
E 



a 




E 
8 


+^ 


'0 

a 








t 

c 


a 
S 






' ^ 




£ 




c c 


5j''5 







n 


c 

CI- 


•§ 




c 








^0 


^ 




nil 




-- .^ 


P- J: C^ Ji H i C 


u.^ 


p^ c|c| 


_s 


E^l 


t. J C I. ^ 


^ 


p 


■— c 


=; D-r- 


c 


S; Bt? s c 


M B 




3 


x^ 3 c^ g--x; T V. 


■^ -^ ;:^ 


gi;g^5^ 




K 3-S 


•S 3^- = 


_ 3 


iiil 




li 


^is-^islilg 


E c~ c 


c 


:/•, 


S =? E c 


S = 


i 




i; 
C B C 


E 


£Bi 


3B£;3E 


3 




^ 


s 


a £ Q a 


< 




« M 




CO 


^ 10 cc r- 


06 


C w' 




C-) ci 


V 



































— 


" 




-^ 


•-I 






■— ' 




^^ 





CONCEXTIIATION OF ECONOMIC POAVER 



259 



g 


Sj 


COOl 


'^ s 


'^g 


CO CO 


o o 


==g 


J5 






C^iO 






?s 


lO 


lo 


Oi 


t- 


CD 


CO 


I ' 




CO 










CO 




ci" 






CO 


c^' 






IC 


— r 






m" 




M 


CC 
















































s 














€^ 


a? 


























^ 








MM 






"S 


N 






(N 13 




(NtO 


S 




























O 


o 


CO 


XI 






o 


•^ 












■^ 




^ 


^ 




jsT 




cs" 




^ 








M 




CO 


.— ( 
































s§ 






























€^ 








« 


«• 




•» 
























tJ! 






















^ 
















U2 




lot- 




to IN 


Oi 


s 


O 


b? 




iS 






t^ 




^H 




CO 




o 


S 


fa 




21 


to 


?!( 


M 


g 






s 








M 


i 


t-: 


t^ 








^ 




Tf 
















e* 


6^ 










































se 
























?s« 












^?; 


■<«<CR 


aO« 


W 






























■^ 










cs 


C» 






CO 






"^ 


g 




qq" 










,_r 










to 


lO 


o 




s 




















































C^^ 


■^ 


S 














Ui 














f^ 












r-1 -< 












rH (N 


ro 






















« 


b^ 








n 








o 


■* 














05 


in 




o" 


fC 




<>( 


o 


>o" 


CO 




r< 


to 


tC 


to 


c4" 












?; 












^ 






























































































6* 


»» 








«« 


«9 


«^ 


«e 















CC ^ lO CO ^ t-H 



to to o o 



C*J to CO 



■«** ^ 



tO-H ooo 



* lo CO r- CO ^ c 



.-H cs .-io> 



CO lO", 



t- ■* ^ Oi CJ I- 
O! CO ooco oco 



i^ O) r* c^> r- ^ CO o 

■<J« CO ^ lO rH 00 rH *0 

^ .-<0 rH -H rH 03 



OICO CO-* 



O rH 



00 O CO to 00 rH t^ O 

c-i 00 orH ■•j'to lor- 

■«^ CO rH •* rH •* iO 



»0 O to t- to rH 



5 ?3 S ^ 



ceo r- CO o 05 o <-« »o 

05 CSO COTt* OO :0 



"g 



rH o «o to ^00 o> to 1-- Tt< ooo 
t- CO cq cs t^ t- to to ooo ooco 



ao 



>VH 






■?a 



«? 


«e 


44 


??■ 


.a 

■s 










? Sl 


TftCO 

"S5 


ss 

I^ 




I 

£ 


1 ^ 


^ 


s 


'^ 










■c 


w 


tfi 


«^ 


_- 



3 ^ 






a§ 



3 «® B 

i 03 a o 



Z<'3Z'<g/^<;-3<!S2;<i 



et 



t«3E 



o a 



o^ o 



oc2 

tr. 3 C 



S ?^ o 



; 3 



a 

»J o 

a ^ 

I! 



o 



i^ 



H .2 s^ ?; 



x: 3E-2 3 g og 
— , -^ = 



00 OS O rH 

—I rH f5 OS 

259845 — 40— No. 15- 






Bg 

3 E 
Z<1 



260 



COM^ENTRATTON OF ECONOMIC POWER 



CO T3 



'^ o 



CO 5a 

It « 



-2 e 



J s 
«-§ 

8 I 
So? 

■SI 

"8 a 












n 


<NfC 




tDr» 


to — lO 






















S 






























.—1 










^ 


^ 


o 






I," 




lO' ' 






uu^ 






K 


yi 






















































t sew6» 




cc »cr- t^ 


■«■ 


~i 


■*C-J 


r^ '- 


"S 


00 CI CO 


00 OS 






i -"SSSS 




























o 






»o 




00 








OS 














iKod 






ccT 1 


1 cot'-'r--*^ 


























































«« 




» 










C^(-(N c^ 




CO 


oo> 


lOTjl 


ooos 


00 CO CO 


U5CO -1 


^ 


CO lO ! 




















--S 












(N 




CO 


»c 


OJ -1 


s 


00 ' 


1 00 00 oo»o 


00 


'-'"Xi'cO 




^*' 


'^'' 




Ol 


^C CI 


iC 




O C^» CM X 


sss 




* 


* 


N 
«© 


ss 


s 









oooxo o 

'-H -^ '^J* Tf 

ro CM CM 

CM X rc 



"S ": 



»» — ir^ i-cic— —CO Mto 
— r- wp c^i^u^ c<iQO CO 



m ■* lO lO 0-. 3: 
— W CO — — :3 
(O C^ -^ t^ 00 



c^ c^ c^ — 




05 00 »c o OS 00 o ^o toe 

""'■~~ —CO NOS C^c 



Ol — OT' 

CO r^ <M 
o — 

tCcD 



T.c^ IN e-1 



— ■* t^ 



J 40 — 



Tji Tj< d — O 
x> o -* -^ 

00 rp to 00 

ooocci r- 

CSO>0'» 

»» . . . 

— « r-< 



NO CO r* -^ OS 



OJC 

co't-." 

— o 
•* — 



o — 



or- 



t^ CO 00 iC 



>CM r-H 

oo'to 



C3o6 



CM ^ 



OSiO t^ CM 



) 00 CO lO >© O 00 fCt^ 



00 ic ri a> o 

i-H O O) CM ^ 

.-< CM o rj 1-1 
r-T o x' u5 

C^ -^f Tt« C^ 
CO lOCO CO 



CM t- O <D 00 ^ 



QCtr^Oi <X>*r> C<J •-* t^ CM 



CM »o lo b- lO Q CO ic o CM X ^ t:: 



Tt< t- CO CMO <C 

00 lo >o r^ CO ^ 

OS •— X iC ■^ 00 



CO 05 ^ -^ 
<0 h-* <DI-* 



s -: 



2SS 



!>. 0> 00 



^ o 5 o 



— COIN IM — 



« o 

° *■ P 
03 3 o 

■g§s 



o 2 

sa 



3 3 



cu (B ;__ 



"Sa 

-13 o 



Jc! , 



S^ 



cico-* 



3^|a^|ao|ai 

£ Z «) E 



ao 



■2-3 



:z;-<i 



a 

Jo 
J I- ■_ 

!|§ 
3 a ° 






3 o 



^ a o.^ n "H ^ a 

3|as=a§3a 



;a 

;S.3 
li^a 



)9 ^ ^ 



03 O C3 



CONCENTRATION OF ECONOMIC POWER 



261 



tOOt ^OcO 



la 1-H 



Cl "^ lO — < 



«^ 



»0 X rH IC 



MO t-'* 



ico i^iM c^^ ^'»*' c^M *coo --'^': 



^ C*5 ^ CO I— < CO 

—lec 1-1 CO to 



001^ cooo o>to «00 



CO .-100 



C< C-> tC 00 CO to ■<»■ 



00 O —I 






•0" T^ 



f»o> CO o e^oi 

IN rH C^ to ■«»< 



"*■«)< O -H 



rt CTi 



^ -H 00 U5 
00 00 



iO O 00 cs t^ t^ ^ 



CO .-11^ 



CO 00 CO »-" 



t- to ■*o> 



C^ t-l OtO rt to 



OtO 

to-«j* 
o'co 



C^ -^f* CO »« ^ to coco 0>05 



^ O (NO> 



§ =:s 



^00 t-l rH OS •« C» ■ 



^ CO CO ^ tor^ CO t^ oc 

(Nco cot^ e^ N ooo e^" 



00»O ^00 b* CO 00>O CO r^ 

o woo e<<c9 o g> 



CO ■* CON 0000 



> -< c^ 



t-- oo tooo 



■^ »o O 00 



> to r^ •• 



O 0J CO i-t CO to 
COC-1 >OC^ .-I to 



>oeo 



ooo >^ "O 
-O 00 to OS 



■*tO INOS >OC0 NN 
F-t 1^ CO ^ to to --< Oi 



:; :2 o 



CO >2 rtc^ o lo coo c^co 



O to ■<»' . 



00 C^ CO o -^ »o 



,-. t^ to 



5 ^ 



e» -H 



«» 



U5 1/5 to CO t^ 



to -^ -^J" UO 



to i^ w5 00 OS e^ t>- 



w 00 CICO 



w 00 

o to 
os"c» 



OS t^ -H 00 ooo coo tooo -^ »H 



o c 

p 3 

be o 



n o 

CO 



o « 



•2a 

1 MX! 3 C8 

•o a ?= t" 

1 c 5 S c 

I a 3 B a; 

> B 

~ o 

o 



.ss 



^ L5" 



» a o oi 

5a°-2 



a. 5 0^ c3 ■! 
- ceXJ g 

5 '='■ a o i 



I c o , 






BS& 
Z< a 



eor; 
-<1 



■ » a 
<a a 



£ o 



' O...OI oisro. Oi Qi 

ujg^ 0|„;t)|..OigOi Oi Si 

.S'G^So ' go '-o"© '5 ° ' "o ' o ' 

r^^«aicSo^ai|aogSoaa| 
3 a5a-=5g«aagfls.2 3a.s3g 

S o 3 £ ft -a 
K l> fe . 03 PQ 

SOS Q Q -H CI 

10 to to CO to 



262 



CONCENTRATION OF ECONOMIC POWER 



e» 


-; 




c 






i;^ 


CI 


*>-, 


c 




U 


R 


1 


;;■ 




^ 


«a 


e 


-; 



Pl. c 



&■ 


■2. 








Ji 




on 






o 




U3 


^ 


% 


"^ 


s 


^ 









e '^c 


»0 


GO 


i 


?^ 


S? 


^ 


8 


OS 

*-< 


s 


"e 




* 


"W 


C 


ts 


^ 



5O0O ceo 



i-t o cc ■<*^ 



or h- ^ O lO O 



I cc cc c^ 



i-H lO r-l O WO 

»0 TP lO GO O 



40 — I 



<:n cc c^ 00 



'8 SS 



-^ ^ 






(MO 


2f? 


^O 


o 


<o 


CO 


^ 




W f-H 


OTCX5 



CO r>- t^ 00 -^ CO 

CO <-< — I "*** 



(D »-« 



»O00 00 CO *o o 
lO ^ ^ 00 



«c CO '"tr CO IOCS 00 Oi ^ ^^ lo c^ oo c^ o "^ 



.p. a 






'•S3 



•S3 



0, a 



«^ 1 



se 



\ 6 o 



a> S 



ss. 






•^o 



T3 O 



CO O f-H CO 



'j'O o to 



050 t-iw; 



00 M N — I 



co?5 s5S 
to o> 



o o to —I 






Se 



rO^^ iO; ,K ... — ,rj 

^2.e c „ S c S S c E S a ; 
a|^3g53E'o = g.S = E' 

<! §.:z:<j ^z< 'r4.< •~'Z< 1 

o ^ >. -S J 



iSg 



S 



i 



CONCENTRATION OF ECONOMIC POWER 



263 



_ss SJ 



e 


v^ 


•i^.o 


60 


"*-> 


K 


^ 




-a 


r> 




i^ 






CO 


f~ 


o 


o 




<j 


?» 


s 


"o" 










c 


-O 






-H, 


s 




e V 



e Si = 






.« o> 



II 
e I 



CO ©< 



a> 00 

O to CO 



■<1"00 MOC 

o o> 

— c 



c cr. --c 



« — — 



<A <^ v^ 



00 C"- »0 to t^ OS 



00-H -H 






0>^ M-"* t~.00 



«»«»«» «I9 



to-* t~ 
f5 to o 



NtO —1 00 



>o C^ 00 






00 c^ «« 



9 - s s 



cc »r> lO ao 



lO *o CO c^ *-< »■ 



CC 1-H 



2 8 S 



) ^ ;0 --H r* O {©C4 



OS OS c^ 

o o S 



^ 0> i-H 



I— I IC iO 5 



— I W CO 



:: S 



S t^ 



^ «? s «* ^ 



00*0 0> «5 .-I CO 



lO to o -< 

S.-H CD C^ 
00 m m 



S 8 



tfi ff> Vi 



-->•—« 



s 



ocs OS CO oc »o e^ ■■ 



■-' — I o Ol —i- 



f-t CO 00 to 



§ 53 1^ 



rt U5 -H 



2. g5 5J ^ ■» 

S S ° S R 
~~' ^ ^ S. _ 



O lO U5Q CO— I 

o »-< w 25 CO cs 
l- t^ —I o to 






S S rt 



r- ,-1 «3. 



«^ ^ ^ «^ 



O O 






2 « B ^, 

r E =■ a> 






E" W 



g Og gc3 



O C O - r- 

1^ <!§;?-« 



- o 
• • o 






a O.C c-o c 

ssgesE 






a S 






264 



CONCENTRATION OF ECONOMIC POWER 



s 2 



5"^ 



1-1 

ft-, ^ 



OS 



s 3 



n 
•< 
H 







to 


(NO 


f-t Q 


O 


o 


o 


Tl<0 


-* CO 


coo 


■* CO 


■>»• CO ■«• lO 


^H II II 






tc 


o 






§ 


o 




CI 









■^ II II 










o 


C^ 


r^ 


•— ' 


^■^ 





CO 


CC -H 


CO II 11 






as 


o" 


UO 


§ 


'S" 


^ 


»■ 


0" 


t-^ 


co" 


0" 10" 


00" 1 ! '• '' 




o 


«» 






>o 




«5 




CO 




CM CO 


11 II 








«^ 


«» 


5? 


«>» 


S- 






^ 


«* 


«J €«• 


Vi \ \ i 1 




I ^ 


e^ c 


CJ — 


„ 


^ 


^ 


(^ cq 


00 CO 


00-* 


00 1< 


CC 00 OCCM 


CO '< '• ! 1 




s 






cc 


CO 


CO 


CM 


CM 


Tj* 


CO CM 






C^ 


(N 


c^ 


■<J< 


(31 


00 


to 


CO 


05 


10 


c5 11 11 




Oi J «^ 


tc 


OJ 


oo" 


r^ 


CO 


of 


oT 


^ 


|.^ 


ct" cn 


00 11 11 






tT 


■^ 


i 




IM 




Tt< 




— 


•^tl II II 




1 


S 


ee 


IM 


s 


<» 


e» 


69 


S 


^ u 


fe 11 1 ; 




5> 


cc o 


o- 


o 


— 


^ 


mco 


00 -ra 


O5 00 


00 CM 


2S Sg 


- c^g 1 ; 




«5 


m 


00 


»n 


S5 


CC 


— 'O 


-.o> 




r-^ ^ 




Tf 




05 


C-l 


CO 


00 




t^ 


Tf 




S ** i i 
•fj« 1 




f»^ i <^' 


05 


r^ 


f^ 


»o 


■* 


>o 


^ 


co" 


^ 


-T r-T 




^o 1 « 


«« 


CO 


i 




s 


SI 


S 


St 


s 


CO 
CO t^ 




! '~' 




«J 




«? 


«» 








«» 


«=► «« 






























«» 1 1 


o 


tC lO 


O —1 


o 


^ 


to 


-HCD 


■^ 


COC^l 


"i 


§§ Sl 


CD CO rH .1 




o 


s 


00 


•o 


cc 




NOT 


MCO 




CM CO . 1 






Oi 


o 


o 


to 






10 






CM 1 1 






s 


c^ 


r-T 


c" 


oc 


^ 


00 


00 


CD 


^ 


tC CD 


cm" 10 1 1 














t^ 




t^ 


■^ 


CD 


s s 


■0. « I . 






«^ 


«& 






s 


IM 






«^ 


1^ 


o> ■ . 










«« 














«9 «9 










































(f> 


«► 


6* 












«* 1 1 






00 


00 m 


t^ -< 


o 


^ 


CO 


t^ ^ 


W -- 


00 


00 »o 


OC —^ 00 QO 


Q CMCO — 






§ 






00 


CO 




(N CO 


co<o 


f-H t^ 


CO CO 


«TJ. COOJ 


2 




^ 


Ol 




"■ 


lO 


o> 


01 


»o 


CO 


O! CO 


«S 


3 


CO 


(M" 






OC" 


to" 


CO* 




CO 




t-^ 


i ^' 


CO (O 


>o 




CO 


■^ 




o> 


^ 







CO 






-H 


(^ 


CM 


m 


s 


o 








^ CO 


CO «» 


C9 




«9- 




es 










w^ 




































CM 


1 










Vi 


«^ 


«9 








«^ 


«» «e 


«» 




So' 


O-f 


00 w 


o 


^ 


tC> 


COM 


^ ■**< 


1-. .-i 


^ 


— —I T-HCO 


292,188 

1 
$100 

$18,0(K) 


M 




o: 


Sio 


00 


00 


to 




coco 


10 to 


MM 


10 to 


>005 >oro 




•* 


to 


o 


o 


o 


^~ 


CO 


r^ 


00 




CO 


S2 

09 


lO 


s 


§ 


(N 


sf 


<N 
8 


S" 


o 


CM 





0<J 


« s 


a> 










00 


CO 






^■ 


*f 




i» 




K 


«« 












S 




















C^ 


c4" 












sl 












69 


«» 


»» 








«9 


«» «9 




»c 


(M to 


co-> 


g 


^ 


t^ 


ooo 


g:l 


m8 


CO to 


CO CO CO to 


i ''i 'i 






30 


—ICC 


« 00 


CO 


CB 


TJCOT 


t^lO 


r-b- t~-H 






o» 




•o 


CO 


cs 






U5 






— to 


i *" S 




■* 


s 


% 


^" 


oo" 


s 


g" 


3" 





OS 

£9 


88 


to « 










■* 


CO 










Oi 


•»< 






«& 


M 


«« 








^ 


«» 






















u 


s 








^ 


Si si 


^" 




S' 


— c CO 


to CO 


m 


o> 


UO 


MCO 


g| 


CMUO 


8| 


8S SS 


CM CO» a> CD 






t^ 


?) to 


^s; 


>o 


cr. 


CO 




^S 


CM CO 05 






o 




oi 




CO 









i^ioo 


05 i-1 '^ 




CO 


K 


ci 


i 


?3 


g 


CO 


§ 


■<1<" 


§ 


cS 


to 00' 

05 C5 


§ 8 8 












(N 


t^ 


o 




«M 






iS' 05 


t^ s 










v^ 








««^ 


<^ 


69 






«* 






^ 






S 


d 


d 








cm" 

«9 


si s 


S 




s 


J5S 


8| 


CO 


s 


s 


ss 


pco 

2S 


to to 


•*CM 
CO t-^ 


CO ro CO 01 


2 too >q 






o 


■^ 




o 


IC 


o> 


•0 


•* 


— CO 




5 « ■" f~ 




e-j 


i 


CO 


1 


s 


g' 




CD 


i 




i 


1 S 


■* f-T CM 

g ;j 2 








<« 








V> 




<^ 






«»^ 






52- 






jii 


Jg 


s 








sC 


sf s 


% 


Ol 


C<0-«J< 


?52 


00 


00 


e^ 


S§^ 


•-H CM 


00 


$g 


to CM -H -1 


10 ,1.0 00 






(N -^ 






o 


CMh- 


fico 


TfcO -WO 






?^ 




00 


»-t 


05 


h- 


o 


.--00 


CC 


— ■* 


— t^ -H -1 




-^ o? 




(N 


ex? 


^ 


lO 


f^ 


cm" 


^ 


^ 


cm" cm" 


t>r -." tC 




g 




12 


s 


S 


s 


^ 


CM 




10 


E: g 


^. ** a 












to' 


CO 








CM 


Si S 


CO 




t^ 






«e 


se- 


«9 








«9 


«» 




; 




i \ 


i 






g^ 1 


<s> \ 


a> 1 


iJS 


^ i i : 


i i 13 : 1 
1 1 1.2 1 1 






























a 


3 ; 








'5 ; 


"3 ; 


'3 ', 


s'i i 


5:3; 


its: 

tment 
mpan 

ccorp 
mpan 






09 


a) 








c« 


.. (9 


09 


03 03 






a 


O. 1 








Q. . 


-^ a 


a ; 


^0. 


a . a 






B 


s ; 




^ I 




iiS ; 


ga : 


a ; 


1- 


a ; a : 






o 


o ■ 








to 


'^2 • 


. . 


;/ ' (2 ' 


S< i en I-- 1 




M > 


o 


.. « ' 




O ' 




H 




0) ■ 


a 1 


1 " ' " i 


tg . g CJ .-J^ . 




bjD 1 




-So i 


8« 


-^ ' 




a> •» 


t* .« ' 








c3 ' ><^ • ai — 






• • o 


"3 ti 

3.3 

ti G 


5^ 

11 




3° : 
cd 3 a 


■2 = . 
gag 

0:1 G 5 


i!^ 


receivan 
umber 
mount . - 
tories: 
umber 
mount . - 


-- :.S° lE° ' 
§ a » « a^o) B 
30-5 B o-sB 9 




='' 3 

to O 


■SBo 










usines 

Am 

unded 

Nui 


2:30 


is 


^sa 


"Be 


asB 


Total ci 
Am 

Nontax 
Nu 
Am 

Stocks 1 
Nu 
An 




^^^ 

K 


o 


o 


■0 

C3 


(d 





8^^ 


I 1 




pq 


1X4 


p^ 


o 


H 


^ 


n 





z 


< 






ej 


CO 


3 


« 


to 


l~^ 


00 


o> 


^ 


CI 


?i s 


^ ^ 8 



CONCENTRATION OF ECONOMIC POWER 



265 















Q 




CO I^ 




Tf CO 




S 






































S : 


: 8 


en 




ro 






1-* 


Oi 


ro 


o 




o 




o 






(^ 




j^- 


u^" 




cc 


r-"* 




1^- 






s 


w- 






cT ' 












a 






























































<«■ 












«» 


«» 


««■ 


«& 


««• 




^ 


. *^ 


"R 




"f? 


„ 


t^CD 


s 


00 


lOrt 




OOM 


OOrt 


00 rt 


lO 
























g 














x 




00 


o 


■^ 


to 




!0 
















o 


c3 




M 


o 


?5 


s 


s 


s 


»■ 


s 


3R 


o" 


s' 


s 




1 ; 


: § 
























^ 




» 














^ 


«e 








«» 








€«■ ' 










^ 


(N O 


■n 


30 


.^00 






00 t- 




no 




<Nt^ 


SS8 i 


; ceo 




































c» 




CO 


rf" 








o 




o 


o 




«* 


^ ' 


^ 






05 


c^ 


(O 


(O" 




IM 


cf 


^ 


tc 


;^ 


CO 


CO 




■ 00 






^ 


























; S 










s 












1^ 
















V. 










^ 










«* 1 


. *» 




^tn 




in 




M 








R^ 




^s 


(N 


fQ^ 








s 


























00 


c» 


CO 


^^ 


00 






■* 


r>» 


n 


CO 


t^ 




Ss 




^ 




CO 


.-T 


N 




00 


OO" 


cf 


oT 


o" 


^ 




^ 




1 lo" 


«^ 


€*9 


«^ 


^ 


i 






^ 


^ 


SI 


i 




6^ 


o 


Vi 


^ ; 


i i 








«i> 




















«9 









NO — < 00 



I CD lo »0 CS 



^ ^f 



CO —I CO t>. 



00-^ «0 OOCT> rf3Q OOCl 1-HCO X(M 

CCQO -^ CC '^ C5 COM iC CO 00 

t-* 00 i-t ^ C^ '^^ O 



h- r^ 



c ^ cso 



2S 



-<** i-H CO 1-H I^ UO 1-H 

CV» -^ CO CD CO CO CO 



1-1 00 1-1 lo I-H lo (-H : 



O -H -. 



NO 00 r- Tj<N lo oi— ' »o 00 lOio "ios ^c^ coo co« ^ cooo oo^ -^i-o nco cocao 

^cc o NOi o »o^ ^ r^ Ttit^ "troo co-h i>.co r^co t^ t^cp co r^cs i-i t*co 

(N CO coco NOi-l OS -^ r* N 00-^ Oi « 00 "-f c« 

Tp r^ 00 ci CO CD 00 N (rf i-T -^ t^ to co" go — T r-C oT 

■^ O --HN (DiOiC OS Oi -^ 00 00»O t> C\ C) CO 00 

*b.^^00 Sfi^'"' ■"* "^ ^-"^ "^ 0»0 N «0 O -H t*) 

ci" i-T N i-T ^■' CO r-T ro 

«CO uO'^t* ^lO CD Oi'4' CO O OOrH OtP OQN OOOO QaO -^ Oi-«t< <--N OOO COO Qco' 

•—CO 1-1 Q cot*- CD t^r* 05 -H coco t^ l^ OO OS Oi CO O CD O OS CO 1-1 CO oo ■«*< OO 

-H p? t^O» i^t^OO Oi Oi. CO iOi-(r-"i-* -OJ |-»,-ir-, ,_,-HCO 

— r 00 00-^ COt-HCD*" O O' CO O Vo CD •-< 00 O? t^ 

C^ *0 0»0 QO«-H CO CD CO O ICO O <-< CO Oi tD 

-H <^ SS.*^ Nooo S.iS "^ ^ o>t>. <N «e^ «■ -H N 

CO "-H cs N ■"*" '^'' «2 '*^*' iS, 

-H X O r^ MO "^f t^ .-* CO (N eooc -^ co ©N Os ■3:' cs :o co co ■^ ^ t^ i-< :5t <0(© cooo 

1— CO «— ■'f'-H ^ 005 N -^ 0>t^ 05-«f ON NO coco 00 CO!© NOO CON ^ COO 

^ O t-^Hf~.-*j»cD— < 00 -^t-HNi— lOriN^FHCO Tt<.-<l^ t-ii-)0 

00 o n'co coosco o" o ■Tf!' o odcD .-H i< go |C ^ 

O OO ■^CO OSCOO <D CD CD ^ OTO 00 CO N lO b* 

«^<4go ^o^ S&S"^ *^ ^"^ ^ «^^«»^ 

«& '^'" aS «2 ^" ^'" ^ '*^'' ^ ^^ ^^ 



s? 



cOi-" t-- "i*^ CO -^ 

■^1-1 lO ^ CD 05 '^ 



SI 



cor~ -joo CON 

ICOO Mt» lO O 

rt to to i-ia 

CO iO CO 

CO — 2 



COO t-ra 



n u? 



!l 



•0X3 § 

•SBo 



pil 

5 t^ 



B° 



ll 



03 H 0-- O 



o 
I- oa 



_» o 



■S^ 



SB 

J3 O 
C3 O 



OS mJ 



ox; g 



occaoiSgc-sotaoOaJBccaEo 



•o'g 
•Sa 






oc5yoz5t:C-s<=btOa;t!co3t;o..-o 



5 2-^92' 



ii§ 



>5S 
~z^ 



^1.% 



Oft :z ;? <! 

O w N CO I** 

CO CO CO CO CO 



^ p 



5 ^ 



266 



CONCENTRATION OF ECONOMR] POWER 







J^ 


rs) 


IC 


£2 


« — , , 


CO =; ri oc 


— -^ t 


rr ac ^ ;o ro — 


_ ,- 




O 


O 








5 ^ — 




to 5 






ri 


t^ 




X 
























~ '_. S . 












§ 


C-' 
















tr 




tj 


5<^ . I 


?S fe "^ 1 


■59 ^ 


CI Vr 








S 


^ 


«• 




«• 




•y^ 




i 00 


00 


r^ 


00 


toco r-l O 


-^ C CO O -tS '■ 


00 o oc o to CI 


O 1- 






r^ 




1^ 


■^ 


M O) 


OC' o cs 


o o> 


CO » 






•^ 


O) 


05 


to 


to «e 




'*' -^ 


TT uo 




o> 


>ra 








cn 


o -f ^^ 1 


oi" CO*" 


o'oo" 




o 


M 


cn 




«• 


-:r !/!. . 


69 — 


•v^» 






r^ 


r^ 


to 






<^ . 


€^ 


t» 






«=• 


«& 


«> 


«=- 






















^-^ 1 














to 




.1 CO IMO 


or- o o — CO 


CO »0 CO Ol CI CO 


CO 3i 






CO 


«5 


't* 


TJ< 


— XI >c 


i-(0 .-^ — . oc c 


r-. CI r-IO — • 


OtO 






«5 


h". 


o 


o 


■^ 00 


00 to S ■ ' 


■o ^; 


ooo 












«^ 










^ 


m" 




to" 


(M 


to I-' 1 


M** C35" 


ci"^' 




r^ 


is 


Tt* 








lO -r 






M 


« 


c 


69 


— ic I 


s ^ 


«969 
















if^ 1 
















c^" 














«> 


«» 


<« 


f/f 












(M 


t^ 


^ 


to 


»C O M Tf 


C^CO COOC ■S'-H 1 


tc -^ ic CO coco 


CI ift 










00 


a-. 


— 00 00 


CI to — 1- CO 1 


OCO Clg -H — 


00 CI 






O 


<D 


t^ 


cc 


■=1 Si 


'- ". s^ ; 




— to 






-^ 


t: 




oo' 




■O IM ■ 


cf o" 


toci" 






00 




s 




i 




^ 5^ 


CO -^ 


























« 


00 


>o 


lO 


t- (N e-> to 




CO M O O IC CO 




£ 




00 


S 


s 


00 


"1 8 


"oo "» ' 5: : 


cog cog ^c 


S3 


_3 


t= 


en 


t>; 


ci 


c^" 


rJ s ^: i 


cf »o 


cTcK 


••2 




en 


M 






CO Tfl 


2ci 


<2 




cc 


m 




t^ 


69 


CO 69 ^-- . 


«9 ^ 








- 










6Pj V 




51.1* 






IM 


c<f 


C-J 














a^ 


69 


«« 


«9 












t^ 


^ 


o» 


t^ 


t-~o> eo» 


•<»> to e> c>> ■/; CO 1 


— CO mco ow 


.-< CI 




r* 


n 


00 




MO o 


■"tf' Oi CO 00 — r 


Tj- 00 ■«■ O CI CI 


OCl 






r~ 


■«• 




•* 


t^ t- 


•>»' ■* « ' 


cn lO 














e^ 










ir; 


o" 


cc 






r^ 


oT -o" e-f-, 1 


o — 


ci"o 




-. 




a, 


3; 


CO 


3> C^ 69 ■■' 1 


CO ^ 


C) -o- 


tH 




o 


o 




■T 


69 




€^ ^^ 


« M 




- 










69 ^ '"' '. 




69 69 






(N 


« 


N 
















6% 


««• 


69 


69 












o> 


lO 


O 


_, 


tON "OO 


O C31 i-O CO to CO '■ 


t^CO CIO >-IC« 


CO->J< 






05 








COOl CO 


<C-S^ TfO: O . 


ir: CO cc-< co-O" 








'«' 


o 


o 


O 


C to 




to t^ 


oc CO 




^ 


o" 


g 


00 


(N 


If cf 


->■ OC -<" 1 


oT cf 


-h'i-T 










CO 69 


C t. 69 1 


-r o 


coco 






So 


o> 


3 


ci 


«ft 


€9 ^ 1 


69 «9 


«^«(9 






C5 


00 


s 


oc 

«9 










s 


^ 


C^ 05 -^ c 


t^!M I- CI -HO ! 


d « --or, Tj. -jS 


tC CO 






o 


to 


<N 


I.O to 00 


00 rO to 3: rH 00 > 


00 0> 05 oc CO to 






oc 


05 


00 


lO 


ft- <N 


=> CO I- 


00 O 


C3 — 




• M c5 


en 


to" 


to 


tr* 1--' 


1- to t-T 1 


oo" oo" 


co'i-" 






to 


C-1 


rf €/? 




to 00 


oc — 




o 


C<5 


lO 






CO C^ 69 1 


•» 69 


Sl» 




lo" 




■^ 


35 












v^ 


»» 


«^ 


^ 










oc 


to 


lO 


C3 


— 00 "CO 


CO to O »-0 to 00 1 


T-. 1-- —CI CO --1 


£•£; 




o 








t^ •-■;• C 


— ■«■ cr. s> -1 CO c 


—1 to CI O CO o 


CI 35 




1 Oi 


"^ 


"5 


T!' 




rH-.-J ■« to 


— c rt — X -1 


.-oco 




' 




















■^' 




CO 




OJ 1ft' C» . 


■O 09 


<-H 35 






a- 


ro 




iC C^ 


-* O 69 p 


CI 00 




i Tf* 


r^ 


» 


to 


69 


00 -w ^-^ . 


69 <» 
















Vr Vf i 




€^ - 




1 ^ 


S 


^ 


m" 

fi9 








W^ 


1 ^n 


o 


o 


CO 


OtO -t- •* 


•* OS iCi'i* toon 1 


IT, t- 00 31 1^—1 


OCO 




■^ 




rr 


d? 


00 00 1^ 


C>l-H OL-O r-"0 1 


-- -1 CI -5 r 1 CO 


O X 




■J ^ 


-* 


t^ 


o 


•* ^p 


f-iCN —i-* C 1 


.-fOO r-<o — 


cp ^-^ 




lO 


o 


^ 


iC 


CO f^ 


to' C-'* '-^^ 1 


lO 1< 


x^ 




'-< t-i. 




CO 


f^ 


-5- W- 


7: ^ *? ' 


fe g 


2^ 




CO 


r- 


CO 


lO 


««• 




^1- 




t 


d 


u 










CJ 
69 




; 
: 

i 






a '. 




: i ; 


; i 1 




i 










.2 ' 


















































(U > 




e9 i 




1 ■ -^' \ 






1 1 










fe ; 




\ :fe ; 


' 1"* ' 




! 1 






a ; 




a - 

O 1 


i/ '• [f! ! 


: '.o. 1 

M 'Cm 




Sa : a I a ; ; 


1 1 


1 i 




o ; 


'5 ; .,'S ; 




••2 i 5 2 

ec c! [uiCti 


1 ; 








•c ■ 




- e3 . . c3 ■-.• CB 

^a -i^s- :!=• : ■ 










a ; 


D. ;-§ Q, ; 


is lis 


, \ 






9 i 


•o ; 


«) ; 


a ;5b i 








a j 


1 ■ 


-3. ; 


o .-go 


■is ;i3 


ss !|| i||^^ 


-' 9 








4i 2 




_«-. ' c>-~ 


*o' ia"o 
a ^ -iJ r^ ^ — 

^1 5 H a = 




>-C 




ji 3 


Si 


O S 


rs expen: 
umber o 
mouut-- 
cnds doci 
umber o 
mount. . 


C o • _ o 
2 v«c fe^ 

a 6 2'S 2 £ 


S'o ;^'o ;^ c.Ss 
c a 2 S So 'd^ 


ill 




50 




ll 




c o 5 


a 






--;-< 


u< 


?.z<:=z<i 


<! 




« 


io 


a 




a > 






o 


O 


03 






C o CS CS 






Iz; 


t-i 


f^ 


O 


tf 5 


a rt o e^ 






lO 


to 


^ 


00 


cn CO 


-; ci to' •* 


1ft to ti 








t^ 


^ 


•f 




ia! ta 


lO <o 


»=- "^ 


u? »ft lO 





CONCENTRATION OF ECONOMIC POWER 



267 



eoo 


"^S 


NO 


iM 00 


MOO 


CO'H 

CO 




"s; 


coo 


«o 

CO 




OlO 


COM 






CO 


00 


r- ( 


»o 


CO 


n 


t^ 


CO 


t^ 


(N 


00 




»o 


00 






lg 


^ 


lO* 


^ 


N 


o 


■■l'' 


co" 


cf 


o" 


^ 




CD 


12 






r>. 


C^ 




v» 


<^ 


■«< 


o 


«» 










<^ 








«€- 


<^ 








«o 


s 




^ff 


«l» 




60^ 










^g 


iO '^ 


CC UO 


CO t^ 


ci »o 


b-io 


00 04 


t~co 


tr~-^ 


COiO 




"i 


1^M< 






CO >o 




00 


C^l 


t^ 


CO 






■^ 


o> 










OS 




o 


m 




>o 


N 


CO 


CO 


r^ 


t^ 






CO 






1^ 


CO 


o 


oo" 


00 


^ 


^ 


Tj^ 


■o 


, "^ 


CO 




CO 


0(5" 








s 


■^ 




lO 


o 


«^ 




C^l 






ee 








v^ 


€^ 








c<« 






«> 




^ 
















«« 




s 


«> 




















Neo 


03 U^ 


C50 


CO t^ 


CO -1 


NOO 


CD» 


CD^ 


„„ 


04 -^ 




coo 


Mr,' 




' i-H r^ 


Mw 


i-i-^ 


lO 




s 


t^ 


f-H t^ 


rt c^ 




I-l 1^ 






CO 


^ t^ 




1 o 


t-c lO 


S. 


<M 


t^ 


CO 


00 


00 


N 


t^ 


»— ' 






■o 




i »5- 


00 


oi" 


^ 


t--r 


Cl" 


of 


^ 


o 


■^" 


r^ 


co" 




oT 


m' 




^ 






lO 


CC' 


«« 




o 










<N 








«■ 








CN 




Cd 


CO 




ffi 


»» 




«? 


•» 








W 


m 


<^ 


^ 




«» 


«» 




















lOCO 


cow 


1-1 CO 


^ Tf 


I^CO 


ss 


^ •* 


(MCO 

CMOS 


ic o 


C^ T)< 




COIO 


ss 




1 CO >o 


OSM- 




I-* ^ 


^ Oi 


-1 C4 




fq t~ 




i-H lO 




o 






— . J^ 


"^So 


o 


CO 




c^ 


CO 


o 




t^ 


o 




CO 


lO 




' OS 




^ 


n 


oo" 


o 


t--r 


CO 


_^" 


^" 


CO 


CO 




co" 


ci" 




I f~r 


co" 




•^ 


o 




CO 




05 


f5 


00 






I. -3 






«3- 


(/i 








CO 


6» 


i 


"^ 


■5fr 


iH 


6ft- 




«• 


s 








«9 


«* 


</> 


e^ 




«» 




















i-iO 


00 t^ 


Tfi CO 


CC IC 


CJC^ 


CMC^I 


■^j- r- 


rt 00 


oc o> 


(N-W 




oo "O 


<- o ^ 


^ ; 


1 >o CO 


to<C 


N05 


rH CO 


»-H TT 


^ CC 


»-. o6 


C^ Oi 


CO CO 


CO Oi 


rH O 


IM 01 




CD 


M CO 


l§ 




C-1 ^ 








iC 


Ol 




c^ 


ff 


00 


en 




CO 


M 


' 00 




t-" 


ir^" 


^ 


tc 


CO 


^ 


co" 


c-f 


o" 


of 




rC 


oo" 




' .-T 


■•S'" 


S 


o5 


CD 






■^ 




1? 








t~ 


M 




1 ce 


«> 










>o 


t^ 




•» 




<^ 


e^ 








«e 


s 


6e- 


€^ 






ffi 




€« 
















M i^ 


>ooo 


COCO 


00 CD 


l^O 


ooo 


CO CO 


-■ 00 


CO CO 


OCO 




OM> 


OCS ri 


^ ;■ 


r- o 


M OS 


CJ-JJ< 


C-1 — 






C^ C^l 


■^ r>0 


-»f 05 


c^ t~ 


CO 03 




rt lO 


CO en 


CO 


M 


COf 


*— ' 


<N 


o 


^ o 


00 


o 


C) 


CO 




00 




CO 


Tt' 


60^ 




o 


oo" 


^ 


(-■ 


C:' 


00 


c-f 


oc" 


o" 


r-T 


CO 




c^ 


■*" 




i c-r 


CO 




o 


IC 


(M 








s 


Tf 


OS 






M 








•**' 






-^ 


€^ 


r>. 






«/7 






Vi 








«^ 


(^ 


6* 


^ 




<* 


^ 




«> 
















<ccq 


r- O 


CMCO 


o-t 


LO t^ 


^^ 


i^on 


CO 05 


r-ICO 


r^ OS 


tti <z> 


CdCO 


OS OS 




' »0 M 


oos 


"S 


cc t~ 


MO 




(N O 




CO 00 


lOt^ 




•<j< r^ 




WCO 


cog 








N 


PJ 




* cc 


t^ 


00 


O) 


«o 


o 




CO 


"O 






CO 


CO 


en 


OJ" 


oo" 


CO 


oT 


^ 


-^ 


US 


cf 


o" 


tc 


§ 


m" 




1 m" 


CO 










a> 


00 


o 


CO 




s 




CO 




<^ 




s 


s 


^ 


i 


se- 


o 


^ 
s 


«9 


i 


^ 


(^ 


^ 


«e 






€ft 


inc 


—1 CO 


tO'O 


1^ o 


>OlN 


>^o 


COOl 


CS -H 


OS t-- 


Tf Ci 


C^ "5 


t*»c 


Sg " 


OS '< 


; o -H 


■*o 


»c ■»»• 


■a- .o 


•*00 


CO t» 


coco 


■<*« c^ 


OS c-i 


i^ t-- 


CO-H 


iracO 


Tf 






. M O 


lO-3< 


m 




o 


« 


05 




00 


co 


o 






■""o 




^H 1 


1 oo 


CO 


to" 


ft 


00 


CO 


cf 


00* 


N 


oo" 


1.0 


^ 


tc 


o 


t>; 


€^ ' 


1 m' 


o 








■^ 


o> 




00 


Oi 








s 


^ 




i «» 




CO 


TT 


CO 




€^ 


^ 


OJ 


»» 


^ 




v^ 








«5 


«I9 


» 












•» 




«^ 
















































«^ 




so- 


««■ 




















QC-H 


t^CO 


•^f r^ 


00 o 


o r^ 


lo t^ 


»o r^ 


CO o 


coo 


N -^ 


00 IC 


CO CO 


^i 




1 oc OS 


CO O: 


»C C9 


MM 


03 


in *c 


coo> 


lOC^ 


MCO 


Olio 


Tj* ^ 


t--Tj> 




C4-* 




1 Nos 


1^2 


cc 


»"• 


15 


CO 


OS 


o 




00 




00 


o 


CO 






■ CO 




^ 


*_r 


<n 


CO 


oT 


ro 


00 


■o 


co" 


os" 


t~^ 


co" 


o 




1 '<)'" 


•«■" 






c^ 








CO 






O: 




CO 


lO 




< a» 


M 


se 




00 


t>^ 


^ 


CO 


■«*' 








s^ 


CO 


^ 






v^ 


f» 


«» 








s& 


u 


6^ 


tfi 


Vi 




(» 












268 



CONCENTRATION OF ECONOMIC POWER 



s ^ 

8^ 



^ 


■^3 


n 








09 


^ 




a 


,^ 


W 
■^ 


J? 


o> 


■>!* 


c 




•«»» 


Tl 


K. 


^ 


s 



=Q 



n 



•I ^ 



n^ CO 
09 -to 

S ® s 

•^ e « 

>^ S 

~s to, g 
a. «i 

«'2 S 

'^■^ » 



1 






















^^ 












»g 


o 


^ OC C-) •* lO 


r^oo 


M ■* 


05 r~ -1 


IN 


s 












00 


1~ OI CO 


*o 


CO 


00 CO CO 


CO 






S 










TJH T*H W 


CO 


o> 


CO c^ 




•* 














a9- - - 




















o 


03 


o> 


■" "S 


•0" 


0" 


!§ ^ g 


CO' 








o> 


1 




t^ 




^H <y> 




^ 


C-) 








U9 






•a 




«/=> 


69 




»» 








S 


j 




«* 
























CO -^ 


t- 


1 "1 "1 


(N 00 




S S 8 


CO 


<_, 


-(CO 


rHO 


~co 








M* 














s 






00 


n 









05 -H CO 





CO 


CO 


CO 




05 


5" 


t 


CO (M" ^ 


g 




c^ o" 0" 
00 r^ CO 


g- 


ro" 


t 


S 








f-H 


^ ^ 


6^ 




«>«»<» 


€ft 


<«• 




«» 


IS 






^ 


^ 






















69^ 


<e 
























CO 


to t^ h- O '^ 


r^ lO 


■^0 


00 —1 CO 


8 


10 




-8 


~ 






2^ 


^ 


S 00 CD 




^ 


OS r^ 00 


^ 




w 






t^ 


00 


s 




O) — 1 


■C5 




^ 


00 




00 


05 


^ 


cT t^ oT 


ic" 


CO 


CO CO 00 


co- 


fC 




CO 


CO 




lO 


<M 


ig s ^ 


!>. 




00 CO 


in 


21 














00 


6^ 


«9 








««• 



















to- »» <^ 


^ 








































6^ 


(Ft 


















«» 






























Si§ 




S g§ 2S 


SS 


■««Q 


§ S R 

00 5 IN 


S 


1 


u,g 


'"'S 


55 






O 


o 


CO O lO 


CO 


00 


CO 




•-^ 


•^ 


CO 




t. 


S 


U3 


Sf ?f 2 


08 


s 


s? s g" 


IN 


S 


!? 


co" 


gf 






to 


«*»»»» 






-H -< 9» 






» 


^ 


















a* » 


»> 
















N 
























«o 


6^ 


















»» 




5I 


C^ 


CO -H CS CO-< 


•*00 


t^ CO 


r^ »o 03 


■>»• 


"s~ 


»s 


U90 


CD 






OS 


^ 00 "^S? 


coB 


CO 


8 CO 






Ob 


£ 






c» 


(N 





10 


N 




Th 


IN 


3 


«> 


5 


lO" 


05- t-^ co" 


s 


s 


2 S S 


?3 


co* 


«" 


§ 


-^ 


'3 




r^ 


(M 






w- 


CO <N — I 


^ 






00 












s 




«/»«»«« 


€» 




5 


S 




£ 




s? 


s 


















s 


1 




^^ 










^^ 








£ 


1 1~ lO 


5D 


00 CO •li CO GO 


gs 


=°s 


irs -ij* 


r^ 




CO CO 


"g 


1*» 


j2 




lOCO 


CO 


K ic o^ JhS 


ni m M 


CO 


s 




CO 


M 




CO 


■^ 




t^ 


r- 


■0 r- 00 


00 


CO 


^^ 


CM 




•^ 


^ 


^ 


CO I'T cs" 


OS 


ao 


CO 00 CO 


•n 


c^' 


^*- 


00 


^ 


c- 


CO 


»5 a* S 


10 


•^ 


05 ;;o CO 




OS 




CD 


00 




•* 


C^ 




«^ 






«» 









>> 










s 




S e« 


as 




«/» 


S 






s' 


t 


















CM 






























oeo 




2g ecg 


r-N 


too 


00 
10 35 


-)< 




t~co 


t^Q 


1^ 






t^t- 




^ /^ 









-< t- 




t^ 








CO 




cS 






U9 


■>J< 


OS 


U9 




•<»< 


g 


•rf 


co' ^ -^ 


t^" 





03 -H i-^T 


co" 


^' 


00 


co' 


CO- 






•S^ t^ -H 


t^ 


iC 


^ <o >o 




s 


I^ 




CM 








O 


(M e^ «9 




f^ 


*9 «» — 




IN 














«> 


^ 




~-^ «j 




€« 


a& 


«« 








s 


S 


















cm' 






























O -H 


t^ 


—1 CO -1 LO 

00 ^ ?5 1-* 


co-<i< 


«>§ 








rt CO 


CO 


M 






ata 


00 


CO-* 


§ 3 ?5 


"9 


e^ 


d 05 




00 




' <=> 


o 






02 


a> 




CO 


*c 


OS 




„ 1 ui- 


(^ 


GO 00 i-h" 


ic 


■^ 


CO -H~ 00" 


IN 


(N 


^ 


of 


OS 






9 


5 




*f 


t^ 


w -^l 








r^ 


CO 






g « ^ 


C-l 


</» 






















■¥i 




^ 6^ 


S 




«4 


«» 








t 


^' 








^ 




^ 






s§ 




t^ »H 


O! 


?0 ON "5-* 


00 cc 


I- -1 


cs 10 S 


r^ 


•* 


^2 


2S 


"00 






-H Tjl 


lO 


•* « WO 

CO -HCO ^ 


t^«c 


00 


00 


CM 


s 






-^00 


CO 


CO 





;35 


1* 


CO 


c^ 




cs 


2 


s 


e^" co" -H 


8 


j2 


cc Oi "Tp 

-- ^ 03 


g 


« 


g* 


05 


g- 










IC — ' ^^ 




^ ^J ;>0 


(N 


CO 
















«^ ^ 


^' 




e^ ^ ^ 


••^ 


<« 




«» 








^' 


«^ 


















*■ 


s;g 




g 2£J SS 


f2S 


^g 


bo t^ 

QO M CO 


w 


5<" 


IN CO 


Sf2 


"i 






1-1 e^ 


00 


[^ — OJ OS 


00 


OC 


a> 01 00 


00 


s 


r- 


OS 









_r 


3" 


CC" ^ TjJ" 


»o 


■^* 


c^ -^' 


tc 


00" 


CO 


"^ 


oT 






OJ 


O) OJ ^ 




r^ 






r^ 




s 






Ol 


CO 


g SJ *^ 


«» 


6^ 


g g Ig 


§ 


I& 


% 


i 






^" 


g 












^ 






3^" 














i 


; ; 


























D. 


■ 1 


























-S 


1 a '• 
'■2 1 


























•3 




























a 


■ «* ! M 


























<a 


:§ is 


























2 


■ m ' a 


























; a ;■" 


























'iU « 




























:* :a 


























« 


■ ■o 




















. ■ ■ ' ' 






1 


1 a ■ 




















. 1 , ^ , , 






' OS ■ c 




















> 1 ' si . ' •• 






p 


















i 






i ' 


a? 




;a ;£ 
1 


a 
.0 






i i 


i ' 










i 1 iga ;| 
: a ;"a ;■§ 


1 i 

a, : 


"3 


£ 


.? 






a ; 


1; 

a ; 

, 

lis 






i" ; 




a ; 


a 


S 


Q. 
-0 






a : 






assets: 
umber of co 

mount 

net sales: 


:8 


mount 

'St expense: 
umber of co 

mount 

al and State 
umber of co 

mount 

sciation and 


- 

, . . 




"o 


a 


• a .a 

+» *j ••-^ 


is 

' B 


s:2 


1 
1 .. 

i-s 






§1 

< a 
8 


aas 




P'^ i:-~ C'~ 


a cs 

3 ""' 


aag 

£ 


a 

3 





s S 2 


Am 
Income 

Am 
Income 

Am 
Income 


as 


ss 


3 C3 *^ 



c 


a 




o a 


1 'S §■ 

a fe 


> 

5 


a 


3 


3 


<) 


M e^ 


ct 


-Qi U^ CO 


t^ 


00 


a! g w 


es 


CO 


j; 


<: 






















1-< 








^^ 





CONCENTRATION OF ECONOMIC POWER 



269 



c*? 


-^ 


If t^ 


Oi ^ 


CO >-i 


00 -< 


00 05 


aon 


c<? 








^ 


?1 


?J 


r^ 


a 




e 




ti 




S 


o 




O ' 




=£ 


3) 


a~~ 


L-j" 


fC* 




—•■ 


„- 


_- 






fC 




i/^ . 




















































































€^ 


«9- 








*9- 


s 


to 


lOtp 


CC'O 


^ 


o 


CON 


CO.-H 




r- 








^ 




^ 






























o 














cc 


C^ 




1 Oi > 


1 CO 


Ci 


M 


C-l 


'y-l 






-tm' 


t>r 


^ 




■^ 










C^" 
































^ 


* 










«« 


«• 




fi^ 


^ 


G^ ' 




</^ 


:0 


t; 


,, 


= ?s 


M<o 


f. 


o 


OOM 


o>co 


OS 


^ 










-r 


































CI 








» 






cc 


CO 


00 1 


1 Ci 




lO 


O 


c 


.i^ 


tC 




•^ 


ro" 


o 






^o 




1 iC ! 










































4<J 




«« 


■!» 


s 




CJ 






1 v» 


€*^ 


O 


































•^ 


























4e 



M « O CJ — 



OS to t- 1^ 
OS CM ^^ 



eJcM S ' 



w 1-1(5 rto cow -Hco 



oco t--* ^^ "SS t^o O' '^<'' t^" *>■* "f^ 



>-i OS -^co 



s: 


i~ 


i>- 


^ 


C: C< 


MtO 






^ 


CO 








-f 






R 


CO to 








































" 
















'^^ 








CO 






to 


" 


■^ 



CO rt ^ 



O too M< to CO -r o to OO 00c 

iO c^r^ o-^ CMO i^^ r-t^ tot 



i-H CM t»os r»os 



O 1—00 



-8 



OS •-< 



C^ 00 QOO O-M t>*-^ OS'O 
OS 00 CO -H OOtO COOS OOiO 



f^ 1-1 






1-1 t- O —OS 



C"! OS OS CJ 

< OS OOS 



O 1-ltO -- to — - 



■* Tti -H 



1 ■*• o t 

!N -1 C 



b- DC MOC 



C go; 



ga 



3 2 a S 



g.! 



88 



t- -H tOOO t~ 11 lOO to 



•^ 00 



OS h- 00O5 f~OS — "O M 



"M «» 



<'>=! <=>z! 



8 2 



ad 

t- 53 

c a 






C 3 ; 



- a s 



s; a 



5 6 



1 n ° != c 



«z<ss?; 



sSapasSaaSsB 



E^ E-i m 






^ = i 



;s3 



si? 



a s 



^ 



s s 



IS 



270 



CONCENTRATION OF ECONOMIC POWER 



b S. 



C^ f-' CO c 



r- o> ooc 



f-{ to 



1-1 <i9- -^ «©■ '-' 



h- -^j- r-- rt* Oi en wo N CO 



r, wM ,-4t>- ^ ^o 



lO --' 



^ c^ 



«» <^ <« 



OO-^ OOiO 



-CO t'GO GOO Oi QOiO 

'-30 — 'w ,-*w CO .-(r-. 



s^ 



r-"M 05 «0 



s s 



■^ o -^ <o 



r-os lo 



--0 r^ <£i Fico •-'00 Noo cic^ Nr>- 



3 OJ N CD oc i-< 



OS "^ 



CO ■— 











,_, 




S2 


•— • 0^ 




1-H «-H 


ao 




C<U5 




^ 


coco 


£3^ 






























^)& 






t^ 


CC 




r-- 








■"J" 


ic 




^ 




r^ 




(O 


^ 








00 


cc 


1 


,^ 


(M 


c 


1^ 


OJ 




o 


c^ 


CO 






































































«<» 


•^ 


«^ 






«9 






«^ 




S^ 








'?'o 








rn 




Si 




S? 






IDM 


^, 


<Sff 




tcco 


^^* 






c^' 






























o 














*-'5 


■«f 








irj 


*— 








^ 




— : 




c^ 


^ 


(-* 






^ 




o 


CT. 


^ 








































































<^ 


i^ 


s 










«ft 


s 




«J 
















»o 


rN 






t>.r-l 




^S 


OT 


oPrt 


OOl 


» r- 


-^ ■*»« 


oc^ 
















W(N 






'-gi 


















CO 




CO 


05 














•"• 




'* 












(-£■ 






^ 


"^ 


O 




00 




■* 


n 


CO 






































o 


c^ 


CO 




r? 


CO 


^ 




Cl 










«S 




;=;i 



. I- Oi —) I • r- O O t- "«J< 



^ ^ CO .-H r- o 



'S s 



o CO a^^ cc •-' 



05 -< 



O O CC CO 






cst-i o*f:> .-<t^ CO «-*» 



^ CO CO ^D kO I- I- i~- 



00 Ci c- Tf" coco co« o* CO 00 a> os 



OiOi OCO 



CSTt* »^: — < 



^CO CD r-< O 



s s 



■5s 

■58 






gc-c-^c 



i S a 



a c 

s s ? s g S. ; 



_» o 



SB 



d 

a 

o 

o 

o 


1 


. 


ii 

go 





« ■=; s -e c o o 

?; ;2 <; 5 ^ -^ e 



cc C^ CO 






c3 g C 

-aa 









_ ^ c 
=3 g5 

S.sE 



3 J - 



CONCENTllATION OF ECONOMIC POWER 



271 



lO rO c-z 



^ ^ ^ 



^^ f^ </^ <^ 



•-•CO --H I-l « 



r^ 6^ 



OOCS OlM t*C) lO-rf C^O f—fi 



^ (N (M — ^ 



V? -^ 



«(* v-i 



1-HO ^O Tl 



OfO '-H O 



00 — < 



0000 — -. 



■—, t^ 



00 CO Cl »o 



»0"^ oco -^o ^o ow 






OS rt CC iM CO I-" o 



(M -H .-H ;o 



o Oi CO ■^ o; o 



iC —t 



^ ^ «& 60^ 



1-H o re o -—CO 



-^r ^ 



00 -^ u:i cc o> t^ 



oc ^ 



d <M -< C*^ 



■-IX t-' a> CO — ' 



00 as CO oi CO c^ OS •-» 

CO -H ^ Ol (N «D t^ 






Tf C> C^ 



toco I— th looo cor^ 
■* en -^ -^ CO CO uo 









I^CO 


cT 




s 






» 


iS4^ 


«» 


SI 


CM (35 






.-H ^ 


oom 














00 


-h'io' 


^ 






^8 


* 


S 


SI 



>M O CO CC CC C 



i^ -^ to t 



MO CO -"tf* 



CMQ — > 



m — 



i^-v — 



3 



W- ^ <«^ 



oo a; CM 

r- -rr to 

CO OC' CD 

irT CO V' 

(N CO i6 

Oi 00 GC 

■^*' Co' CO 

M> ^ <^ 



^t^ „o; 



-.CO 00 t 



h-O cooi t^ C^ COOO t- '-^ 



r-lCS 5D (N 



^ CD w 



00 — « 



N CD ■* Oi 

O CO <-' o> 

r>. -^ r^ t^ 

»0 OS CO iO 

CD CO O CD 

■vj- Oi o r- 

CO CO CO ci 



; ^ i-H OS 



.-H iO .-I OS 



CO '^ lO OS 
■^ CO 

00*"^" 



t-00 CM C 



^ o o^ 

^00 CO CM 



CM -4 



^s 






"I 



3 *^ a o 3 
o oj o be o 



t; -s a 



a o 

="a§ 



.5 5 



»'S 



■2B 

T3 O 



s 3 s s 3 a 



o 
-c 

i 


OI 

a 


c 

3 
o 

B 


Sfe 

~ 3 



3 
o 


a 


11 

si 

3 C 
^<1 


B 
8 


p 


:4 


■< 


S. 


z 


<f; 


« 


a 



"O t- jj a) t- 



ga 

88 '« 
- .^ s 



38- 



aj rt C3 Qi v; CUJ 






?^a 



5a o 
'sa 



, !? t^ f, o « 



a 



g o - 

B a|a--3a^3a 

rt ^ P:, 



>=) 3 S 



272 



CONCENTRATION OF ECONOMIC POWER 



»c lo a> 00 00 »o 



^ 3 



o I 



CO .e 

s « 






si 

^ C3 
■^ «o 

« g 

e CD 
l'§ 

"oo Oi 

^^ 

1 "« 



CO rH 



'xf o OS <ar> CO 00 o co t^ o 
''i^ CO 1-t CD iM t^ a-. 



^ C5 






CI —< 



^ -H ,-( 



<-H TP ^ O 00 to 



» to C^ Cfl " c 



i/^ ^ r-t 



CMOS C^ 00 W Tt< 



i-H h>. CO r-t ^ Oi 



oc — < 



iio c^ ic CO r^ 



^ O OiO 



to f-* 



r-i r-' CO OS "b 00 



OS O OS t^ .-H c 



CO CO »-■ iC 



C fN 

c5 v» 



i~>. »o iO »o -<r o CO -H Tj< t-- M^ 
r-tco ^t-- coco -^r^ coic -^t--- 



■^ CO C- '^ 



CO i-t 



<0 CO •-( C^ OS CD 



00 C^ lO M -^ OC' 



t--r- 1-ios rHfo 



»C I-t CO 



CO ^ 



-H C^ 



*C CS| CO C^J cooo 



-co m t^ 00 o 



OsoO t* (N 



00 CD 00 O OS ^ 
05^ 50*Q ^ — 

OS c5 



OS OS «OiCi oos 



■^ ro O 00 



as 



.S 3 



big c 

i.Saa 

22; -< 

3 »Li 



di g o 



c »- ^ 

03 CO a 

Sao 



56 



3 a 



So 

a. t. , 



^a 



I ; 



sE : 3 B 






OOUT »« 



oce a; (^ 



ox 00 »^ 






iJ s, 



E2;<iT3 



>>s§SBoi:s5Seo 

:: ^ = ^ :- c r, - c" 3 E5 3E o = 8.9 = S 
5>^<~;^-'~/,< i:^.<; c/-.;z;< ^■A<i z.^< 



S a g 0^ a^ ^ a 

EosaoaEi'-ao>>SoSBoi:so§ 

V/.-^'^'y ■e' — 'j^ -' w y <!< i?/?", .I- .,-7 <f hxtt: '. 



3! s 2 



13 -3 



►-: < 



CONCENTKATION OF ECONOMIC POWER 



273 



S 

-I 

I ^ 

S s 



o 


5 

$338, 127 


00 

i 


00 


ccoo 














s» 






i 


B 


CD ■^ 


M O 

?3 




"i 




i 


o 


1 


o. 


«4 


s 
^ 


s 


g 


a 


i 


g 


00- 




s 






ooo 


uj 


s 


-w 


-^ CO 


to ■# 




^ 


« 


£■ 


§ 




^ 




cs 




o> 








»c 


CO 


00 

1 
1 
1..., 


i 


5 


CD 


o 


s 


o 




I 


§ 

(^ 


s 


i 




^g 


S 


-^ 


5g 


rt CO 


rf IC 


.-ite 


c^ 


t- 


t^ 


OS 








00 










05 


00 




*o 


.- 1 


o 


on 


CD 


■o 


o 


to" 








(N 




! 


8 


t^ 




«» 


<« 


5& 






to 


cc 


s 






«9 «> «« «» 



»o cs c^ CO oi OS «:> CO c^i 

(g CSrt rtOJ (MC<1 — . 

00 O I^ CO r-i 



^8 



5 I 



1 


s 


i 


u 


■* 
SJ 


i 


s 


t^ 


O:' 


s 


>o- 


^ 


m' 


















«» 


««• 


6^ 




















^2 

■ 00 


OS 


1 


^1 


«g 


coS 


coco 


1 


u^ 


i 


S" 


?5 




§ 


E 


S 


s 


^ 




g 


?r 


s 


s 




~-' 












«9 


«* 


»» 


^1 


§5 


s 


CO 06 


c^oo 


5I 


NCO 

CO 


Oi 

00 




t^ 


^ 


— < 


(N 


00 


to 


•* 


CO 


m 


»o" 






^- 




274 



CONCENTRATION OF ECONOMIC POWEK 



gT3 

Oi -J 
00 



fc.e 



rH o O 



C» rH N 



00 --< 



CO 00 00 



mo -H ^> 



« r^ 



lOt- OC (>> 



00 « CD I 



,,- 


•o" 


f,- 


ci 






^ 








^ 




































f/i 




f» 








«» 


«» 


SI 


s^ 





00 ^ '^'i 



■^ Oi ^^ '^J'r:! "^o ■'fio (M« 3J t-HcD 
.-<'X c^^ w CM-*** f'lX' c^o r^ t^ 



rH CO en CO ^ 

(N l~- 05 '•*' M 

^ O «:: W €^ 

i^ /^ t^ ^/^ 



'o-^ 



to « 



ft S 

S 2 

53 i» 



CD CS CC C 



"S 



o c^ om 



M CO n c<t CO c^ 



ot- — •-<< 



0> Q — 

^ CD IM 



O « rt 

W3 1^ M 

—I 05 O ^ 



S 5 



t^ ^ 



S 2 C: 



«? ^ 6*?^ 



t> 00 00 3 — t ^ 0> OOl COO 



.-H ^O -^ CO Tf 00 -^ (N 



<N CO 00 O: 



Ci OOO O O ^ —« 



4^ ^ 



05 *0 »0 00 



^ t^Oi -"i*;© OCO C(N ... 



t^ i-H 



CO <N F-^ 



f/^ (^ ^/^ 






-It;- O Q 

.-< CD ^ tO 



'-r^ OOX o:D cot^ COCO 
fC oa lO CD »-t M CD <-< CD "^ 






ecoo «iji t^ 



2:s? 



CO CO r-t 



»0 O 00 .'O 



CO o .-» C^ CS i-< o 



1§= 



« CO 






«^ *^ ae- 



=c 



I 






; 1=1 
: a 
; S 

: 8 

..o 


3Ck: 
of companies 

)ck: 



Sf : •- ii'r- 



II 



■Ss 



c-^ a-c c ' 



II 



9 o'^ 



ill 

o 
O 



ESS 






CI o 

O 03 



P ft 






^ 2; 



CONCENTRATION OF ECONOMIC POWER 



275 



'^g . 


; "g 


05 


M —1 


00 


00 


cote 


MO 


OJO 


•OOl 


lO <-» 


N 






































S ; 


U 














o 














O 










■^ 


5 






■^ 


























^ 






























^ 








6« 


e& 


a* 1 








N O I 


I ^^ 


f 


05tO 


00 


00 


°>5^ 


05 00 


TJ.O 


^Ol 






1-reo 1 








€« 1 




























5 






05 




















« 1 


1 fi 


^ 


1 co" 


OJ 


O 


OJ 


Oi 


s 


s' 


I-^ 


to 


^ 




*-r I 


1 c*q" 




















































































<» 


»» 


«» 


** 1 








"S ' 


1 ^ o 


P3 


■>»• t~ 


to 


lO 


i-O 


wm 


oco 


tOM 


to 00 


00 


too 1 




































Ǥ i 


1 00 








'^ 




o 




05 


Oi 






1 T}< 


•^ 


o 


. c" 


00 


!S 


,_,' 


eo" 


i? 


o 


?; 


^ 






od" 1 


1 i-T 


£N 






















































































«. 




^ ; 








^O 1 


1 ec« 


Tjl 


IMO 


TJH 


„ 


■*;c 


•VtO 


t^T(> 


ooo 


N 1^ 


M 










: S 








































■* 










to I 


o « 


t^ 


CO 


f-T 1 


■ eq 


r^ 


03 


f-l 


OJ 


^ 


^ 


r^ 








V "^ irT 




















































































a?- 


V- 


«e- 




«. 


«e 


<« 




ee^ 



11 Mm 


o 


i 


g| 






-s 


.-1 lo 


Sg 


^i 


^5 00 


t^ 


o 


CO 


-^g 


s 




"g 


1-1 r>- 


. 1 m 


s 


o 




fe 


«^ 


§ 


S 
«• 


1 


(M- 

i 




00 




«J 








>C1 





T^oo lO-^ N cq OS cc ^ 00 CO »ooo »oco t^ oo tow t^Tj< co r^-<** -^tO OOt^ r-lO< 
■t* to 1-t^H o> ccr^ "M w c^tc cjaD (Nio coto cocs 35 co»o oz coo t>» 

t^ »0 !OtO r-<Ot» O C CS t-t-C^r-1 ^H Tj< CO C^l 



-H CJ -> 



— > t^ 

O 1-H 



5 



— (N 



-!J1 — . 



UO rH 



CC»0 OOeC N 00 00 00 CS tC 1-H C^ 1— I .-I CO CN O Tt* « lOW OS CC "J^ -^00 COtP r-< T*1 

r*» CO f-H o ec ec co r-- >** coo cooi coo -^ ^ ^ oi co ■^ ■^ >-h rt^o oo 

.-1 ft toco (NOO *0 C O «C O^ '^ «O00 00 

c4" CO to ci oT CO oQ -xT irf <:d oT (M*" o> oo o •^jT -^ 

i-i CO -^(M r^-^lN ^ Tt O O CO.-H XT^ €flkO CO 



iOO c> U3 r^ 1-H 



C^ <OW <Ot^ OrH 0>N 1-HCO i-H i-HCO W5CO iNC3i i-HtT CICO 



CO C^ COt>- CO t^ TfiO »0 05 (N »iD CO 



I"- iC CO 



CO ic ^ 



I^ •*»■ •-« 



r- lo 00 c> Oi O) 



i^o CO 00 co»o c^cc lor^ co-^ 



CO »0 CO OS i-H 



■^^ i-f CD OS 






r*as lo i-H 



^■ cs oso OS oc 



1-1 «D '^O »O00 OS 00 WM TjfO 00 -^00 COCO CO Oi O OS WQO 



•** Oi ^ »o ^ O 



(M w 



i'- 00 t^ci 



1— I r^ CO •-( 



|i 

o S s 

c 

p 

?5 



en a 

"S ** 



a 






•e ° 



£3a" = a 



"sa 



^ o 



O •- C •; 
H S* C ( 

< S-< ■ 

12; z -u 



1 a = 



s a o 

5J3,~ - 



sa- 



'aS-S S^'S : 



at.. 
7-c 



OS ca 



^ a s s a I g c;^ a C.S a s ^ a o-g s § « B § 

c p E OS g.S S~ a B" 3 a a.3 «> 3 a 3 a 



s c ° 



259845— 40— No. 15- 



-19 



276 



CONCENTRATION OF ECONOMIC PqWER 



CO r-in 



00 00 g rj 

S S S N 



U3t~- rt' 



«P» r~^ 



00 00 o 

rt i-H T)< 



^^ -*§ 



wirs — - 



r- N <D t 

M r» i-c * 

^ «§ «l 



coo t^N C^C^I 



«OM "ON 



^ s 



228 

<o 



ooo noo 



c» >-< 



2* S8 



iS -"S 



COOO »C 00 •<«< lO 



rH ^^ .-H lO 



g 









■-1C 



CD CO 00 



«»»»«»«<» 



•O l-H 



OCN COCO 



CO t^ 


5:s 


:2s 


CO lO 

?3^ 




i 




M 



1-H tH OOO 

t» CO M-^ 

CO 00 >A 



f-H ic t^co 



»0 C> 00 CD 



.^ ,^2; "<' 



-H CI ■-! 



S:; s 



S S "S 



TJ*»C -HOS O500 OSC 



COCO OS »c 
W3 »i5 »C 05 



r-4 lO CO t^ 



CO ^~ 



NrH CO-H COCO OV CO 



)0 cot^ 

>^ CD(M 



8 :: 



tH IM i-H CM 
«» «» «» «» 



ooo 



53 §5 



= ot 3 p 3 

_ o£ o he o 






Dj; 






a o 



Is 






S o 



o o 
3 « 



el 



a u V > V > 



_> "5 .> -^ 



t) 3 B » 



^ Eh Eh u « 



oj — ■ 



3 OS-O 
O 



d ° Sa-9 SO 

'^ -O -O r3 CO -^ 3 

■3eo">ap 

a.3E-3|a 






1 — «- >■-< 

OS 

aS 9 2 S c M £0 5 «"i « M 

s^|ao3B2|a°g a 



CONCENTRATION OF ECONOMIC POWER 



277 



"S 




C4 « 


, ^ 


1— ( ^ 






eot^ coo 






coco 








McO It 







tft — 














OS —1 






£? 














CO 




"-I 


^ 


^ 






00 CO 






M 








s : 1 ; 


t «^ 


rf 


*o 




oo' 


s 








cr' 


M 






■*- 












10 


■41 




«» 








•9 


«« 


















— t 
















<A 






«» 












«« 


S5 




































ioa> 


CO-* 


coos 


cot~ 


MCD 






OSt~ OS— 1 






100 








cojra 1 1 






00s 




J5 




s 


s 






CO OS 






s 








GO • • 1 

-^ • i 






-s 










^9- 






























"f 


<N 


o 


M 










t^ 






s 








M 1 ■ 












S 


•^ 








■* 


6^ 












•» I > 






4« 




^ 


e» 










<5 
























•» 






«» 








*^ 






















. 00<-l 


too 


»o « 


»o X 


40CC 


M CO 




CDu- 


CO 00 


-lOS 


OOM 






'^M 


oco j 1 


1 — IM 


TJ<M 






CD 






00 




—•00 —1 00 


5 















-s? 


s 


IQ 


o> 


CO 


i— t 








Oi 


10 






M 


OS 1 ! 


; ^ 


oo" 


8 


CO 


CO 


•^ 


co" 




IT 


co" 


iO" 


p 






J^ 


M 1 1 


CO 




CO 


1^ 


€^ 






iC 




6^ 








«« 


<«■ • 1 




«» 




«» 


<« 






<^ 




c 


«» 




<^ 














«» 






s 


























o-^ 


00 i-« 


oo-«< 


t'-OO 


Oi CO 


CO lO 




coo 00 <N 


CD OS 


■*•* 






■<»• >o 


00 '1 


; ^„ 


005 


Sff 


o> 


w^ 




t^ 


■* 




(M <0 — It^ 


OS 








8 






— 00 


!>• 






t^ 


-<*< 


M 




o »o 


OS 


OS 






OS 1 1 


1 ^ 


>o 




o 


CO 


Iff 

05 


s 


CO* 




8 2 


a 


<g 






5 


SI i i 




t-T 


2 




«9 






^^ 






«» 


«■ 








v^ 






^ 1 


«e 


s 




s 








*? 


















■ooo 


MOO 


eo-H 


ot~ 


0»co 


00 CO 




031 "O-* 


'^S 


I3ST)< 






IOCS 


— OS 1 1 


1 100 


S| ( 


*-4Cf3 


•-H C^l 


":? 


»-« CO 


*o 






CO -4 


CS CD 


— • t* 






CO 


MO It 




00 




00 




O 




•» CD 


F- 


t^ 











1 <» 




00 


m" 


ic" 


CO 


•^ 


r^ 




o- 


s 


1^ 


Tjj" 






s" 


— r 1 1 


r^ 




r^ 


o 






CO 






CO 


OS 














«« 






€« 






a 


Vi 


«> 


<» 








m 1 1 




«^ 


«» 




» 


«^ 




s 




«» 


















o»oo 


•OC5J 


•« 


CJ T)< 


OO 


ceo 




t^ t- gs-r 


00 iO 


H"^ 






000 


SS£ ' ' " 


i ""S 


CO — 






NOJ 


-1 1^ 


—•00 


r- O 




coco M CO 


OS 


MtP 






S2 


M OS < 1 


"S 


CO 


"Js 






O 


c^ 




CC 


OS 




00 






OS 


CO 1 t 


i ^ 


W5 


CO 


oi" 


o 








r^ 




OS~ 


Tl? 






co" 


•^ I t 




»■ 


CO 


<M 


o 


2 




~5 























«? 








Vi 


















«» 1 1 








S 


«5 


«• 




■» 




^ 




•» 


«^ 






«• 






















«I9 


















Sf2 


OOO 


coco 


M -H 


•vt~ 


t-HO 




Wrt COM 


OSU5 


OS CO 






t^oo 


SS i i 


I t~o 


MCO 


.ICI 




-HCO 


t~t to 


« CD 




•«< M CO 


CD 


MOO 






■>»< 


1 t^ 




00 




"oo 


o 


»o 


t^ 






CS 


r~ 






CO 


t^ t 1 


i ^ 


CO 


lO 


o» 


CO 


oo" 


jo" 




•<* 


m" 


s 









CO" 


M- : ; 


in 


o 


t^ 


•o 






CD 




■^ 


5i 


■ra 












«» 




«^ 






«> 


M 




c^ 












«» t 1 






«» 




«9 


^ 




•» 








a» 


s 






<» 






















^ 


















iHW 


s? 


•OCO 


1-(N 


oco 


CO -o 




OC^- 


— • ■» 


o>o 


— «e 






t»o 


COM '< ': 


'. cow 


r-t^ 


coo 








.- CO 




10 >r 


•"T t^ 




PSg 






t^ 


MiO t t 


t CD 


"S 




o> 


'^o 








»/■ 


t- 










CO 


CO t 1 


r- 






































i 


00 


9R 


s 


•s 




iS 


: ^ 


g- 


s 






g 


ID . 1 


t ^ 


o" 


s 








«> 


yi 
















«» ! 1 




«» 


<e 


w» 


«« 










^ 




«5 


^ 






«s 






















€*^ 


















t~o 


oo 


o-^ 


MO 


OS CO 


CD O 




C^05 (O !^ 


M M 


■^ -^ 


-iO 




Osr~ 


00 CO 't i 


1 OSOO 


— M 


CO 00 


CO •'J' 


(M r 










50 cr 


M-M 


^ M 


CO CO 


c^ 




rj* 


"S ; ! 


t OS 


»o ^~* 


CO 




N 


M 


'"'oo 


»o 




r>i 


M 




OS 


m 




t^ 


;' ^ 




t-T 


^ 


"O 


M- 


s 


^ 




^ 


^~ 


m" 


JC 




-3<" 


m" 1 1 


co" 


<o 


o> 


CO 


■>»< 








s 


M 








iO 


















■o 






M 


M 






M 


«» 1 ' 




•» 


w 


i» 


e» 


«^ 




^» 




r~ 




f^ 


«* 






«► 






















€^ 


















»>o 


§1 


CO •<*< 


•^o 


Osg 


CC 33 




8g S| 


OiO 


"i 


coo 




—.00 


— t^ 1-lOS 


1 OS — 


ss 


coco 


f-H t^ 


•-•CO 




— . CO 






CO 




-10 


coco «(5 . 


1 M 


<s 




CO 


r- 


CO 








— • 




M 






CO 


; s 


CO 


CO 


t^ 


^ 


■o 


o 


00 




tC to 


m" 


^ 


c< 




M 


ig 


"5" 


00 


U3 




CO 


S2 


1^ 




•t 




OS 


•0 






10 














«» 


-J< 




CO ««- 




M 






M 






4» 


^ 


«* 


««^ 


«& 




6^ 




«» 


«=• 


«e 


V. 




Vir 






T ! 
























• I'd 










'•a 




: : 1 

! 1 ' 


.§ ; 




ik 


5 1 


.i i 


.2 ! 


1 

E 


1 


c» \ 

^'9 ) 


a ' K 


to' ;£ 

•s ;i 

03 M 


a 




•a rs 


CO ; m ' tfl 

'a ; 'a "3 c 


ill ''-^ 

;«a i-s 


w 1 

'S ; 


C3 


5 '!S 


C5 




S ! 


^ 




ga . 


C8 sis 


ca 


i: 


ca '-w 


ca ca c:- a: 


ca 


0* 1 


P. . 


«-H '^ 


Q, ! 


p< t 


p. : 




Q. 


^ > % 


0. , ao. 


3 a ; H 


a :|a :|a 


a ; 


a ; 


B ; 


i :i 


s : 


e ; 


E ; 


3 


a 


5 a ; 


a ; ^ 


a ;=> 


a 







a I'd 


a : 


R ' 


o . 


o • 


O ' 


p ' 




c 


^ 


c ! ^ 


1^^ 





CO 


8 ;« 


S ;|8 ;^8 


iisil 


• 


t) ' J, 


O 1 




o 1 


O 1 


ij 1 







Su , 


.« 


" ' !R 







t 


3 j-J o 








•s "a 




— ' s 


— 'S 










°jl 


o ; 


O [ 


o ; 


§ 





•oo ; 


;*; 
U4J — 






1- .k^ 




° ;c 


jis^-s 


; 


s|§s.^§si§i 


S: a 




c- 5 




~ 5 


CS □ 


l§§ 


l§^^§ 


bi 


||5 


■S§£|§5| 


9 a & s " 
§ia§i 


II 


1 1 


H o-o 


B o-s 


^ O c/" 


P O Hi 

5a.s 




1 


a I 


sao 

-S 3 a 


Bog 




a 


a >. 


a oS- s §;!; g 


a 


m 




= E-2i 


= 3 


3E 


§a.a 


sa 


03 


aatf 


3 a5 3 B'c 3 


a-Ssa " 


sE 


;^<5pj2<i2 


^<-g 


^<i 


■S^<1t3 


:z;-<^ 


z< 





Z^E. 


Z<!«:2;-<;vz 


-< 0,Z< fc 


z< 




C3 


3 '5 


a! 






5 


c 





£ 


a 05 


« 5 
S 


1 






■< 






























s s 


g 


s 


5 


s 




3 




s s 




s 


CO 




oo' 

CO 


OS 

CO 


■^ IC 


m" 


CO 





278 



CONCENTRATION OF ECONOMIC POWER 



Table G-j^. — Geographical and asset size distributions of the number of small 
baking corporations in original 1926 sample, supplementary 1930 sample, identi- 
cal 1926-36 sample, identical 1930-36 sample, and numher-of -y ear s-bef ore- 
failure groups 



Area and asset size 


1926 


1927 


1928 


1929 


1930 


1931 


1932 


1933 


1934 


1935 


1936 








Number of firms 


in original 1926 sample 






NEW ENGLAND 

I.ess than $50,000 


1 

22 
6 
2 


19 
6 
1 


17 
6 
2 


14 

7 

1 

1 

.... 


13 

5 

3 

...... 

1 


13 
5 
2 
1 
1 
1 


1 

12 
5 
1 
2 


10 
5 
1 
2 


8 
4 
2 
2 


8 
5 
1 
2 


7 


$50,000 to $100,000 . 


3 


$100,000 to $150.000 


3 


$150,000 to $200,000 


2 


$200,000 to $250,000 


2 


2 


1 

1 




$250,000 and over 


1 


1 


1 


1 


1 














Total 


32 


28 


27 25 1 


23 


23 21 


19 


17 


17 


16 




_, ,. . , , .,1 




EAST 

Less than $50,000. 


33 
12 
4 
2 
1 


25 
12 
5 
3 

1 


23 
9 
6 

1 
3 


21 

8 
4 
4 
2 


20 

8 
4 
4 

1 
1 


1 
19 19 


17 
6 
3 
3 


17 
5 
4 
2 


13 
5 
4 
1 


12 


$.'i0,000 to $100,000 


7 
4 
3 
1 

1 


6 
3 
2 

1 
1 


5 


$100,000 to $15C.OO0 . 


1 


$150,000 to $200,000.. 


2 


$200,000 to $250,000 




$250,000 and over 


1 
























Total 


62 


46 


42 


39 


38 


35 


32 


30 


28 


23 


20 






MTDDIE WEST 

Less than $.50,000 


30 
17 
6 
6 
4 
1 


26 
17 
5 

3 
3 


23 

18 

5 
4 
2 


19 
10 
8 
6 
3 
2 


15 
21 
4 
7 
2 
2 


19 


19 


19 

10 

6 

3 


18 
11 
4 
2 


18 
8 
3 
3 


16 


$.50,000 to $100,000 


13 9 


9 


$100,000 to $150.000 


4 
6 
3 


7 
4 


3 


$K50.000 to $200,000 


2 


$200,000 to $250,000 




$250 000 and over 


1 
























Total --- 


64 


61 


57 


54 


51 


46 39 


38 


35 


32 


30 








SOUTH 

Less than $.50,000 


13 
6 


9 
5 


9 


7 


5 

4 


7 
2 


5 
2 


5 
2 

1 
1 


6 
2 
1 


5 
2 
1 


5 


$50,000 to $100,000 


4 1 4 


1 


$100 000 to $150,000 




1 
1 


1 


$150 000 to $200,000 


1 
3 


2 
2 


o 


1 


1 


2 




$200 000 to $250,000 


1 

1 












1 


1 


1 




























Total 


22 


18 


17 


14 


11 


11 


9 


9 


9 


8 


7 






WEST 

Less than $50,000... 


8 
3 
2 
1 

1 


8 
3 


7 
4 


9 
2 


9 
2 
1 
2 


5 
2 
1 
2 


4 
2 

■■3' 


3 
1 
1 
3 


3 
1 
2 
2 


3 
1 

2 

1 
1 


3 


$50,000 to $100,000 




$100,000 to $150,000 


3 


$150,000 to $200,000 


2 
2 


2 
1 
1 


2 
1 
1 


1 


$200,000 to $250,000 


1 


$260 000 and over 






























1 




Total 


16 


15 


15 


15 


14 


10 


9 


8 


8 


8 


8 






Grand total... 


185 


168 


158 


147 


137 


125 


110 


104 


97 


88 


81 










^ 


dumber of fln 


nsin s 


upplementary 1930 sample 






NEW ENGLAND 

Less than $50,000 , 










3 

1 


3 

1 


3 


3 


3 


2 


2 


$50 000 to $100 000 












$100 000 to $150,000 




















$160 000 to $200 000 
























$200 000 to $250 000 








































' 






















3 


i 








Total.. 






" I--I 4 


4 


i 


a 


2 










-. 






' 


■ saiHE 


! Illl 1 ■ 


^ 



OONCBNTRATION OF ECONOMIC POWER 



279 



Table Q-A.— Geographical and asset size d^'stributions of the nvmber of small 
baking corporatio7is in original 19^6 sample, supplementary 1930 sample, identi- 
cal 1926-36 sample, identical 1930-36 sample, and niimber-of-y ear s-bef ore- 
failure groups — Continued 



i 
Area and asset size 


1926 


1927 


1928 I 1929 

i 


1930 


1931 


1932 


1933 


1934 


1935 


1936 




Number of firms in supplementary 1930 sample— Continued 


EAST 

Less than $50,000 










4 
1 

1 
1 


4 2 


1 
2 


2 


1 


1 


$50 000 to $100 000 
















$100 000 to $150 000 










1 
1 


1 

1 


1 

1 


1 

1 


1 
1 




$150 000 to $200,000 










1 


$200 000 to $250 000 
















----| 










































Total _.. 










7 


6 


4 4 1 


4 


3 


2 


MIDDLE WEST 

Les« than $50 000 










7 
4 
2 
4 


5 
5 
3 
2 


6 
4 
3 
1 


5 
4 
3 
2 


6 
4 
4 


6 
4 
2 
2 


6 


$,')0 000 to $100,000 










4 


$100,000 to $150,000 










1 


$150 000 to $200 000 











2 


$200 000 to $2.50 000 










































1 














Total — - 









1 17 


15 


14 


14 


14 


14 


13 


SOUTH 

Less than $50,000 








9 


8 


8 


7 


6 
1 
1 


5 
1 

1 


5 


$50 000 to $100 000 








1 1 


1 


$100,000 to $150 000 








1 


1 


1 


1 


1 


$1 "iO 000 to $200 000 










$200 000 to $2'i0 000 






















$250,000 and over 























Total. -. 






11 


10 


9 8 


8 


7- 


7 


WEST 

Less than $.50,000 










5 
1 

1 


3 
...... 


3 

1 


3 
1 


2 
2 


2 
2 


1 


$.50,000 to $100,000 








2 












$1 50 000 to $200 000 






























1 








$2.50,000 and over 






-1 






1 








Total 








7 


4 


4 { 4 


4 


4 


3 











46 


39 


34 


33 


33 


30 


27 












NEW ENGLAND 

Less than $.50,000 _. 




Number of firms in identical 1926-36 sample 






8 
5 

1 


8 7 
5 5" 
1 2 

1 . ! 


6 
6 
1 
1 


7 
4 
3 


7 

4 

2 

.. 1 


7 
5 
1 
2 


7 
5 

1 
2 


7 
4 
2 
2 

1 - 


7 
5 
1 
2 


7 


$50,000 to $100,000 


3 


$100,000 to $1.50,000 


3 




2 




2 


j 2 1 1 
|...__.| 1 


1 
1 


1 
1 




$2.50,000 and over - 


1 


'M ' 


1 


1 


Total , 


16 


16 j 16 1 16 16 


16 


16 


16 1 16 


16 


16 


EAST 

Less than $50,000 


11 
5 
2 
1 
1 


10 9 ! 10 
4 6 14 
3 2 2 

2 -i 3 

1 3 i 1 


10 
4 
2 
3 

1 


10 


11 


11 11 


12 
4 
3 
1 


12 


$50,000 to $100,000 


4 1 4 

2 2 

3 2 
1 1 


4 
2 
3 


4 
3 
2 




$100,000 to $1.50,000 




$150,000 to $200,000 








$2.50,000 and over 










Total 


20 


1 20 1 20 20 


20 


20 20 


20 


20 


20 


20 


MIDDLE WEST 

Less than $50,000 


12 

11 

3 

3 

1 


10 

13 

2 

4 

1 


1 

9 
14 
3 
2 
2 


8 


7 


11 15 

12 8 

4 6 
3 1 


1 

16 16 
9 9 


17 
8 
3 
2 


16 


$50,000 to $100,000 


13 1 17 
5 2 
3 1 4 




$100,000 to $1,50,000 


4 
1 


4 

1 


3 


$150,000 to $200,000 _. 






1 


1 




$250,000 and over 
















Total 


30 


30 


30 1 30 1 30 


30 30 


.SO 1 30 


30 


30 



280 



CONCENTRATION OB' ECONOMIC POWER 



Table 6-A. — Geographical and asset size distributions of the number of small 
baking corporations in original 19ii6 sample, supplementary 1930 sample, identi- 
col 1926-36 sample, identical 1930-36 sample, and numler-of -y ear s-bef ore- 
failure groups — Continued 



Area and asset size 


1 
1926 j 1027 

1 1 


1928 1929 


1930 


1931 


1932 


1933 


1934 


1935 


1936 




Number of firms in identical 1926-36 sample— 


-Continued 




SOUTH 

Legs than $50,000 


3 
3 


1 

3 
3 


4 3 , 3 1 


4 
2 


4 
2 


! 

4 
2 
1 


5 
1 
1 


4 
2 

1 


5 


toO.OOO to $100,000... 


2 


3 3 


•1 


$100,000 to $150,000- 






1 


$150,000 to $200,000 


1 


1 


1 


1 


1 


1 


1 




5200,000 to $250,000 










S250,000 and over 












































Total... 


7 


7 


7 7 


7 7 


7 


7 


7 


7 


7 


WEST 

Less than $50,000 ... 


3 


3 


2 3 


3 
2 

1 
2 


3 

2 

1 
2 


3 

2 

...... 


3 
1 

1 
3 


3 
1 
2 
2 


3 

1 
2 

1 
1 


3 


$50,000 to $100,000 


2 2 


3 


2 




$100,000 to $1.50,000 


2 




3 


$150,000 to $200,000 ... 


2 
1 


2 

1 


2 
1 


1 


$200,000 to $250,000 


1 


1 


$250,000 and over 


































Total 


8 8 


8 


' 8 


8 


8 


8 


8 


8 


8 


8 








Grand total 


81 81 


81 81 


81 


81 


81 


81 


81 


81 


81 










Number of firms in identical 1930-36 sample 






NEW ENGLAND 

Less than $50,000 






2 


2 


2 


2 


2 


2 


2 


$50,000 to $100,000 










$100,000 to $150,000 






















$150,000 to $200,000 






' 
















$200,000 to $250,000 






















$250,000 and over 












































Total 








2 


2 


2 


2 


2 


2 


2 














EAST 

Less than $500 000 










1 


1 


1 


1 


1 


1 


1 


$50 000 to $100 000 












$100 000 to $150 000 
























$150,000 to $200 000 










1 


1 


1 


1 


1 


1 


1 


$200 000 to $250 000 




























































Total .- 










2 


2 


2 


2 


2 


2 


2 


MIDDLE WEST 

Less than $50,000 










5 
3 
2 
3 


5 
4 
2 
2 


6 

4 
2 

1 


5 
4 
2 
2 


6 
4 
3 


6 
4 
2 
1 


6 


$50,000 to $100,000 










4 


$100,000 to $150,000 . 










1 


$150,000 to $200,000 










2 


$200 000 to $250,000 




























































Total 










13 


13 


13 


13 


13 


13 


13 


SOUTH 

Less than $50,000 










5 

1 
1 


5 
1 
1 


6 


6 


5 
1 
1 


5 
1 
1 


5 


$50,000 to $100,000 










1 


$100,000 to $150,000 










1 


1 


1 


$150 000 to $200 000 












$200 000 to $250 000 








































































Total .... 










7 
2 


7 
2 


7 

2 
1 


7 

2 
1 


7 

1 
2 


7 

1 
2 


1 


WEST 
Less than $10,000 


1 




i ' 




1 


$50,000 to $100,000 ... 










2 


$100 000 to $160 000 










1 


1 




$150 000 to $200 000 




















$200 000 to $250 000 
























S2.50.000 and over ... 

























CONCENTRATION OF ECONOMIC POWER 



281 



Table 6-A. — Geographical and asset size distributions of the number oj small 
baking corporations in original 1926 sample, supplementary 1930 sample, identi- 
cal 1926-36 sample, identical 1930-36 sample, and number-oj-years-before- 
failure groups — Continued 



Area and asset size 


Number of years before failure 


I 


2 


3 


4 


5 


6 


7 


8 


e 


10 






N 


umber of firms in years-before-failure ftroups 




NEW ENGLAND 

Less than $50,000 


15 
2 
1 


12 
2 


11 

1 


9 
1 


7 

1 


6 

1 


5 


3 


1 


1 


$50 000 to $100 000 




$100,000 to $150,000 










$150,000 to $200,000 . . .. 




















$200,000 to $250,000 






















$250,000 and over 










- 


































Total 


18 

27 
6 
2 

1 


14 

21 
6 
2 

1 


12 

15 
5 
2 

1 


10 

12 
4 
3 

1 


8 


7 


5 


3 


1 


1 


BAST 

Less than $50,000 


10 
5 
3 
1 

1 


8 
3 
5 


3 
2 


6 
2 
2 


4 
2 
2 


1 


$50,000 to $100,000 -.. 


1 


$100,000 to $150,000 - 


1 


$150,000 to $200,000 




$200,000 to $250,000 












$250,000 and over 


1 


1 


1 


1 


























Total 


37 


30 


24 


21 


20 


16 


12 


10 


8 


3 






MIDDLE WEST 

Less than $50,000 


21 
6 
4 
5 


16 
5 
5 
6 


13 
5 
2 
6 
1 
1 


10 
6 
2 
4 
2 
1 


10 
3 
3 
2 
2 
2 


7 
2 
2 
1 
4 
1 


4 


3 


2 
1 


1 


$50,000 to $100,000 




$100,000 to $150,000 


1 
...... 

1 


1 
1 
2 

1 




$150,000 to $200,000 


1 


1 


$200,000 to $250,000 




$250,000 and over 


2 


1 


1 








Total 


38 


33 


28 


25 


22 


17 


9 


8 


6 


2 






SOUTH 

Less than $50,000 


15 
2 
1 


8 
4 


7 
2 


5 

1 


4 


3 


1 


1 


1 




$50,000 to $100,000 




$100,000 to $150,000 














$150,000 to $200,000 


1 

1 


2 

1 


1 
1 














$200,000 to $250,000 


i 










1 


1 


$250,000 and over... 


1 


1 


1 


1 
















Total 


19 


14 


12 


8 


5 


4 


2 


2 


2 


1 






WEST 

Less than $50,000 


10 
1 


6 
1 


6 
1 


6 

1 


6 


3 


1 








$50,000 to $100,000 








$100,000 to $150,000 








. .. 






$150,000 to $200.000 










1 












$200,000 to .'>250,000 








1 












$250,000 and over 




1 


1 
































Total 


11 


8 


8 


8 


7 


3 


1 
















Grand total 


123 


99 


84 


72 


62 


47 


29 


23 


16 


7 







282 



CONCENTKATION OP ECONOMIC POWER 



Table Q-B.— -Geographical and asset size distributions of the number of small men's 
clothing corporations in original 1926 sample, supplementary 1930 sample, 
identical 1926-36 sample, identical 1930-36 sample, and number-of-years-before- 
failure groups 



Area and asset size 


1926 


1927 


1928 


1929 


^1930 


1931 


1932 


1933 1934 


1935 


1936 








Number of firms 


in original 1920 sample 






NEW ENGLAND 

Less than $50,000 


7 
9 
2 

1 


4 
7 
1 
3 


3 3 

7 6 
1 1 


3 

5 

1 
1 


5 
2 
2 


7 
2 


6 
2 

1 


4 
4 


5 
3 


4 


$50,000 to $100,000 


3 


$100,000 to $150,000 ... 




$160,000 to $200,000 


3 


2 








$200,000 to $250,000 














$260,000 and over 












....... 


































Total 


19 


15 


13 


12 


10 


9 


9 


9 


8 


8 


7 






EAST 

Less than $50,000 


54 
28 
16 
8 
9 


47 
23 
22 
4 
4 
3 


38 
20 
17 
4 
1 
4 


34 
16 
12 
3 
2 
4 


20 
13 
7 
2 
3 
1 


23 
12 
4 
4 

1 
1 


20 

8 
2 

2 

1 


16 
8 
1 
3 


14 
6 
2 
2 


12 
5 
4 
1 

1 


13 


$50,000 to $100,000 


2 


$100,000 to $150,000 


1 


$150,000 to $200,000 .. 


2 


$200,000 to $250,000 




$250,000 and over 






1 
















Total 


115 


103 


84 


71 


52 


45 


33 i 28 


24 


23 


19 










MIDDLE WEST 

Less than $50,000 


26 
6 

12 
4 
2 


28 
5 
7 
4 
1 
1 


21 

5 
2 
3 

1 


22 
4 
4 
2 
1 
4 


16 
fi 
3 

1 
2 


16 
5 
4 


16 
4 
3 


16 
4 

1 
2 

...... 


11 
4 

1 


to 

3 
1 


9 


$50,000 to $100,000 


•-> 


$100,000 to $150.000 


2- 


$150,000 to $200,000... 




$200,000 to $250,000 


1 


1 


3 
1 





$260,000 and over ... 


o 














Total 


50 


46 


39 


37 


28 


26 


24 


24 


19 


18 


17 






SOUTH 

Less than $60,000 


2 

1 
1 


1 
1 
1 


1 

1 

...... 


1 
1 

1 


1 

1 


1 

1 


1 

1 


1 


1 


I 


1 


$50,000 to $100,000 ... 




$100,000 to $150,000... 




1 




$150,000 to $200,000.... 










. 




$200,000 to $250,000 
















1 




$250,000 and over 








































1 




Total 


4 


3 


3 


3 


2 


2 


2 


1 


1 


1 


1 






WEST 

Less than $50,000. 














1 
1 


1 
1 


2 


2 


•> 


$60,000 to $100,000 - 


3 


3 


2 


2 


2 


2 




$100,000 to $150,000 .. . . 


...1 - 




$150,000 to $200,000. 
























$200,000 to $250,000... 
























$250,000 and over 
















































Total 


3 


3 


2 


2 


2 


2 


2 


2 


2 


2 









Grand total-. 


191 


170 


141 125 


94 


84 


70 


64 


54 


52 


40 












J 


vTimiber of firms in s 


upplementary 1930 sample 






NEW ENGLAND 

Less than $50,000 . 










2 
1 


1 

2 


1 
2 


1 
1 
1 








$60,000 to $100,000 ... 


"" 








2 

1 


2 


2 


$100,000 to $150,000 












$160,000 to $200,000 




















$200,000 to $250,000 




















1 


1 


$260 000 and over ^ / 






































■ 








Total 










3 


3 


3 


3 


3 


3 


3 




^l 









CONCENTRATION OF ECONOMIC POWER 



283 



Table 6-B. — Geographical and asset size distributions of the number of stnall men's 
clothing corporations in original 1926 sample, supplevientary 19HQ' sample, 
identical 1926-36 sample, identical 1930-36 sample, and nurnber-of -year s-bef ore- 
failure grrowps— Continued 



Area-and asset size 


1926 


1927 


1928 1929 


1930 


1931 


1932 


1933 


1934 


1935 


1936 






Number of firms in 


supplementary 1930 


sample— Continued 




EAST 

Less than $50,000 










37 
16 
10 
4 
4 


26 
19 
5 
1 
3 
1 


23 
12 
2 
2 
2 


18 
11 
2 


8 
13 
2 


8 
10 
2 

1 
1 
2 


4 


$50,000 to $100,000 










7 


$100,000 to $150,000 










6 


$150,000 to $200,000 , 










1 

1 1 

2| 3 


1 


.'f;200,000 to $250,000 










1 


$250,000 and over - . 










2 
















Total 











71 


55 


41 


35 26 


24 


21 


MIDDLE WEST 

Less than $50,000 










4 


3 


3 


2 2 


2 


2 


$50 000 to $100 000 












$100 000 to $150 000 






















$150,000 to $200,000 














1 



1 


1 




$200 O0(flo $250 000 










1 


1 


1 




i 





























" 













Total 










5 


4 


4 


3 3 


3 


3 


SOUTH 

Less than $50 000 










1 












$50 000 to $100 000 




















$100 000 to $150 000 






















$150 000 to $200 000 






















$''00 000 to $250 000 






















$250,000 and over 






















Total 










1 


































NEW ENGL4ND 






Number of 


Qrms in identical 19- 


26-36 sample 






Less than $50,000 


2 
3 
1 
1 


1 
4 


1 
4 


1 
4 


2 
3 
1 

1 


4 

1 
2 


5 
2 


4 
2 
1 


3 

4 


4 
3 


4 


$50,000 to $100,000 


3 






$150 000 to $200 000 


2 


2 


2 








$200 000 to $250 000 














$250,000 and over _ 

























Total 


7 

9 
6 
1 

1 
2 


7 


7 


7 


7 


7 


7 


7 


7 


7 


7 


EAST 

Less than $50,000. 


10 
5 
1 


10 
5 
1 


s 10 
"3 
3 


10 
5 
1 
1 
2 


10 
5 

1 
3 


13 
3 
2 
1 


12 
4 

1 
2 


13 
3 
1 
2 


12 
2 
3 
1 
1 


13 


$50,000 to $100,000 


2 


$100,000 to $150,000 


1 


$150,000 to $200,000 


2 


$200,000 to $250,000 


1 
2 


"""5' 


'l 

2 




$250,000 and over 










1 


Total 


19 


19 


19 


19 


19 


19 


19 


19 


19 


19 


19 


MIDDLE WEST 

Less than $50,000 . 


8 
3 
5 

1 


7 
4 
4 
2 


7 
G 
2 

1 
1 


7 
3 
4 


7 
5 
3 
1 

1 


8 
4 
4 


9 
4 
3 


9 
4 
1 
2 
...... 


9 

4 

1 


9 
3 

1 


9 


$50,000 to $100,000_.. 


2 


$100,000 to $150,000 


2 


$150,000 to $200,000 




$200,000 1 $250, 000 


1 


1 


3 
1 


2 


$260,000 and over 








2 


2 


















Total ,.,._ 


17 


17 


17 1 17 


17 


17 


17 


17 


17 


17 


17 



284 



OONCBNTRATION OF ECONOMIC POWER 



Table 6-B. — Geographical and, asset size distributions of the number of small m,en's 
clothing corporations in original 1926 sample, supplementary 1930 sample, 
identical 1926-36 sample, identical 1930-36 sample, and number-of-years-bef ore- 
failure grouvs — Continued 



Area and asset size 


1926 


1927 


1928 


1929 


1930 


1931 


1932 


1933 


1934 


1935 


1936 




Number of firms in identical 1930-36 sample- 


Continued 




SOUTH 

Less than $50,000 . . 


1 


1 


1 


1 


1 


1 


1 


1 


1 


1 


1 


$50,000 to $100,000 




$100,000 to $150,000 
























$150,000 to $200,000 .... 
























$200,000 to $250,000 :.- 
























$260,000 and over 
















































Total. 


1 


1 


1 


1 


1 


1 


1 


1 


1 


1 


1 


WEST 

Less than $50,000 - - . 














1 

1 


1 
1 


2 


2 


2 


$50,000 to $100,000 


2 


2 


2 


2 


2 


2 




$100,000 to $150,000 








$150,000 to $200,000 
























$200,000 to $250,000 

























$250,000 and over 
















































Total 


2 


2 


2 


2 


2 


2 


2 


2 


2 


2 


2 






Grand total 


46 


46 


46 


46 


46 


46 


46 


46 


46 


46 


46 








Number of firms in identical 1930-36 sample 


NEW ENGLAND 

Less than $50,000 










2 

1 


1 

2 


1 
2 


1 
1 
1 








$50,000 to $100,000 










2 
1 


2 


2 


$100,000 to $150 000 












$150,000 to $200,000 




















$200,000 to $250,000 




















\ 


1 


$250,000 and over 














































Total . - . 










3 


3 


3 


3 


3 


3 


3 














EAST 

Less than $50,000 










6 

7 
4 
3 

1 


5 
11 
2 

1 
1 
1 


7 
9 
2 
2 

1 


6 
10 
2 

1 


4 
13 
2 


5 
10 
2 

1 
1 
2 


4 


$50,000 to $100,000 . . 










7 


$100,000 to $150,000 










6 


$150,000 to $200,000 










1 


$200,000 to $250,000 










1 


$250,000 and over. . . 










2 


2 


2 
















Total 








21 


21 


21 


21 


21 


21 


21 














MIDDLE WEST 

Less than $50,000 










2 


2 


2 


2 


2 


2 


2 


$50 000 to $100 000 












$100,000 to $150 000 
























$150,000 to $200,000 














1 


....-- 


1 


1 




$200,000 to $250,000 .... 










1 


1 


1 


$250,000 and over 








































Total 










3 


3 


3 


3 


3 


3 


3 


SOUTH— None 
WEST— None 










27 


27 


27 


27 


27 


27 


27 















CONCENTRATION OF ECONOMIC POWER 



285 



I'able 6-B. — Geographical and asset size distributions of the number of small men's 
clothing corporations in original 1926 sample, supplementary 19S0 sample, 
identical 1926-S6 sample, identical 19S0-S6 sample, and number-of-y ear s-bef ore- 
failure groups — Continued 



Area and asset size 




Number of years before failure 






1 


2 


3 


4 


5 


6 


7 


8 


9 


10 






Number of firms 


n years-before-failure groups 




NEW ENGLAND 

Less than $50,000 


8 
3 
1 


3 

4 

...... 


2 
2 
1 

1 


1 
3 
1 


1 
2 


1 
1 


1 
1 


1 

i 


1 


1 


$50 000 to $100,000 -. 




$100,000 to $150,000 






$150,000 to $200,000 














$200,000 to $250,000 


















$"250,000 and over 












































Total 


12 


8 


6 


5 


3 


2 


2 


2 


1 


1 






BAST 

Less than $50,000 . - 


92 
32 
16 
2 
2 
1 


60 
25 
25 
4 
3 
1 


40 
20 
15 
7 
3 
1 


32 
19 
6 
6 
3 
1 


16 
10 
6 
2 
3 
1 


13 
7 
4 

1 


3 
4 
3 
2 
1 
1 


3 
2 
3 


2 


1 


$50,000 to $100,000... 




$100,000 to $150,000 


2 


2 


$150,000 to $200,000 




$200,000 to $250,000 


1 


1 


1 


$250,000 and over 












Total 


145 


118 


86 


66 


38 


29 


14 


9 


6 


4 






MroDLE WEST 

Less than $50,000.. 


24 
1 
6 
2 

1 
1 


22 

2 

3 

...... 

1 


16 
2 
1 
1 
1 
2 


15 
1 
2 

1 
2 


9 


8 


6 


4 
1 

1 
1 


1 
1 


1 


$50,000 to $100,000 - 




$100,000 to $150,000 


1 
1 








$150,000 to $200,000 


1 


1 






$200,000 to $250,000 . - . 






fXi'UljOOO ftnfi fiver 






























Total 


34 


30 


23 


21 


11 


9 1 7 


7 


2 


1 










SOUTH 

Less than $50,000 .. 


2 
1 

1 




















$50,000 to $100,000 


1 
...... 


1 
1 


1 
.1 


1 


1 


1 








$100,000 to $150,000 








$15C,000 to $200,000.... w. 














$200,000 to $250,000 




















$250,000 and over ... 












































Total 


4 


2 


2 


2 


1 


1 


1 
















WEST 

Less than $50,000 






- 
















$50,000 to $100,000 


i 


1 


















$100,000 to $160,000 .. 


- ii 
















$150,000 to $2O0,C00 






















$200,000 to $250,000 . . 






















$250,000 and over . ... 












































Total . 


1 


1 




































Grand total 


196 


169 


117 


94 


63 


41 


24 


18 


8 


fi 







286 



CONCENTRATION OF ECONOMIC POWER 



Table 6-C. — Geographical and asset size distributions of the number of S7nall 
furniture corporations in original 1926 sample, supplementary 1930 sample, 
'identical 1926-36 sample, identical 1930-36 sample, and number of years before 
failure groups 



Area and asset size 


1926 


1927 


1928 


1929 


1930 


1931 


1932 


1933 


1934 


1935 


1936 








Number of firms in original 1926 sample 






NEW ENGLAND 

Less than $50,000 


13 

I 
5 


10 
14 
3 
2 

1 


8 
12 
4 
2 


8 
9 
4 
2 


9 
8 
2 
2 


7 
10 


7 
9 


8 i 5 


5 
7 
2 


5 


$50,000 to $100,000 


8 

1 


8 
1 


6 


$100,000 to $150,000 


1 1 1 


3 


$150,000 to $200,000 


1 






$200,000 10 $250,000 


1 " 


1 


::....! i' 


1 




$250,000 and over 




1 


1 


1 


1 


1 




1 








1 










Total 


32 


30 


27 


24 


22 


20 I 18 


18 


15 


15 


15 






EAST 

Less than $50,000 


22 
9 

7 
7 
4 


19 
9 
7 
fi 
2 


20 

8 
4 


15 
7 
4 


12 
5 
5 
2 
2 

1 


11 
4 
4 
2 


11 
3 
1 
2 


10 
3 
1 
2 


9 
3 
1 

9 


10 
3 


8 


$50,000 to $100,000 


3 


$100,000 to $150,000 




$150,000 to $200,000 . 


4 2 
2 4 

1 1 


1 
1 
1 


1 


$200,000 to $250,000 


1 - 


1 


$250,000 and over 


i 


1 


1 


1 


] 




1 






Total 


49 


43 


39 33 


27 


22 18 

1 


17 


16 


16 


14 






MIDDLE WEST 

Less than $50.000 


16 
15 
14 
16 
6 


15 

18 

12 
4 
4 


14 ; 9 
12 j 14 
9 1 7 
9 12 
6 1 2 
3 3 


8 
13 
10 

7 
1 
1 


9 
16 
10 

2 

1 


15 
14 

7 

1 


15 

11 

7 

1 


11 
12 
6 


13 

7 
5 

1 
1 


11 


$50,000 to $100,000 


8 


$100,000 to $150,000 . . 


3 


$150,000 to $200,000 


3 


$200,000 to $250,000 .. 


1 


$250,000 and over 


























Total. 


66 


62 


53 47 


40 


38 


37 


34 


29 


27 


26 


SOUTH 

Less than $50.000 


5 
8 
7 
8 
5 


7 
9 
3 
8 
1 
4 


5! , 
5 3 
5 5 

4 3 

5 8 
3 2 


4 
3 

6 
6 
3 

1 


3 

5 
3 
5 
3 

1 


1 

7 
3 
6 
1 


1 


3 


2 
2 

1 
4 
3 


1 


$50,000 to $100,000-.... 


i\ ? 

5 5 
2 1 2 


2 


$100,000 to $150,000 


1 


$150,000 to $200.000 


3 


$200,000 to $250,000 


2 


$250,000 and over . . 


1 






1 






Total 


33 


32 


27 25 


23 


20 


18 


14 


11 


12 


10 


WEST 

Less than $50,000 ... 


5 
1 
2 
2 
4 


4 
...... 

2 
...... 


2 3 


1 


...... 

1 
1 
1 


1 


1 








$50,000 to $100,000... 


1 












$100,000 to $150,000 




2 

1 

...... 


1 


1 ! 1 


1 


1 


$150,000 to $200,000 .. .. 


2 2 
2 1 
2 2 




$200,000 to $250,000 










$250,000 and over 
























Total 


14 


10 


9 8 


5 


4 


2 


2 1 


1 


1 






Grand total 


194 


177 


• 155 1 137 


117 


104 ! 93 

1 


85 j 75 


71 


66 










Vumber of fir 


ms in s 


upplementar 


y 1930 sample 






NEW ENGLAND 

Less than $50,000 






! 

1 


11 
3 
1 

1 
1 


10 
2 


7 
3 


6 5 
1 1 


4 
2 


4 


$50,000 to $100,000 






.. . .1 


2 


$100,000 to $150,000.. 








1 


1 


1 




$150,000 to $200,000 






1 


1 
1 




1 




$200,000 to $250,000 














1 


$250,000 and over 








































Total 








17 


15 


10 


7 


7 


7 


7 


EAST 

Less than $50,000.. . 










6 
4 
1 

1 


C 
2 

1 


6 


6 


4 


4 


4 


$50,000 to $100,000 












$100,000 to $150,000 










1 










$150,000 to $200,000 . 


















$200,000 to $250,000 






















$250,000 and over 
























Total'. 










12 


9 


7 


6 


4 


4 


4 



CONCENTRATION OF ECONOMIC POWER 



287 



Table 6-C. — Geographical and asset size distributions of the number of small 
furniture corporations in original 1926 sample, supplementary 1930 sample, 
identical 1926-36 sample, identical 1930-36 sample, and number of years before 
failure groups — Continued 



Area and asset size 


1926 


1927 


1928 


1929 


1930 


1931 


1932 


1933 


1934 


1935 


1936 




Number of firms in supplementary 1930 sample 


MIDDLE WEST 

Less tban $50,000 








7 
5 


8 
4 
1 
1 
3 


5 
2 
2 
3 


3 

2 
1 

1 
1 
1 


3 
2 
1 
2 
1 


2 
3 
1 
2 

1 


1 


$50 000 to $100,000 








3 


$100,000 to $150,000 








1 


$150,000 to $200,000 










3 
3 




$200,000 to $250,000 










1 


$250,000 and over 










2 




















Total 










18 


17 


12 j 9 1 9 


9 


8 














SOUTH 

Less than $50,000 










3 
4 
2 


4 
2 
2 


4 
1 


3 
1 


2 
2 
2 

1 


2 
2 
1 

1 
1 


1 


$50,000 to $100,000 










3 


$100,000 to $150,000 










2 i 2 




$160 000 to $200,000 










2 


1 
1 


2 


$200,000 to $250,000 






:::::::::::: 


2 


2 




$250,000 and over 










1 
























Total 








11 


10 


9 


8 


7 


7 


7 














WEST 

Less than $50,000 














1 1 


1 


1 


1 


$50 000 to $100 000 










1 
1 


2 


1 






$100 000 to $150 000 






" 












$150000 to $200 000 










1 


i 1 


1 


1 


1 


$200 000 to $250 000 








i" 










































Total 








3 


3 


3 2 


2 


2 


2 
























61 


54 


41 j 31 


29 


29 


28 
















Number of firms in identical 1926-36 sample 


Less than $50,000 


3 

4 
3 
5 


2 

7 
3 
2 

1 


3 2 4 


4 
8 
1 
1 


4 
9 
1 


6 
8 

1 


5 
8 
1 


5 
7 
2 


6 


$50,000 to $100,000 


5 6 
4 4 
2 2 


6 
2 
2 


6 


$100,000 to $150,000 - 


3 


$150 000 to $200,000 




$200 000 to $250 000 


1 


"!"'i" 


1 


1 








1 1 1 


1 


1 








i 








Total - 


15 


15 


15 1 15 15 


15 


15 1 15 


16 


16 


15 


EAST 

Less than $50,000 


4 
4 

1 

2 


5 
3 

1 
3 
2 


6 
3 
1 
2 

2 

1 


4 4 
4 3 

2 1 4 

^ 1 ^ 
2 1 

1 ! 1 


5 
2 
4 
2 


7 7 
3 3 

1 1 

2 2 


7 
3 
1 


8 
3 


8 


$50 000 to $100,000 - 


3 






$150 000 to $200,000 


1 
1 

1 


1 


$200 000 to $250 000 


1 




1 


1 1 1 1 


1 










Total --- 


14 


14 


14 1 14 1 14 


14 


14 14 i 14 


14 


14 


MIDDLE WEST 

Less than $50,000 


6 
6 
4 
7 
3 


6 
6 
4 
5 
3 
2 


1 I 
6 i 6 1 6 
6 6 1 7 


I 


9 8 
9 10 

7 7 
1 1 

1 


9 
11 
6 


12 

7 
5 
1 

1 


11 


$50 000 to $100,000 


8 


$100 000 to $150,000 --. 


3 4 4 9 

7 7 7 2 
2 11 1 


3 


$150 000 to $200,000 


3 




1 




2 1 2 1 1 




. ..::i 














Total_ 


26 


26 


'26 26 


26 


26. 


26 26 26 


26 


26 


SOUTH 

Less than $50,000 


1 
J 


1 
2 
2 
4 
1 


<^'i r " il 1 1 

■211. 1 ! 1 1 2 
3 1 3 2 1 2 1 1 
1 l 13 1 3 ! 5 


■ 1 

1 1 1 

2 2 
1 1 


1 
2 
1 
4 
2 


1 


$50,000 to $100,000 - 


2 


$100 000 to $150,000 


1 


$150,000 to $2e0;000 - 


4 


4 
2 


3 


$200 000 to $250,000 


3 1 4 3 1 3 : 1 2 




$2.'iO,000 and over -. 




I 


Total _ -... 


10 


"■10 


10 1 10 10 1 10 j 10 i 10 i 10 


10 


10 



288 



CONCENTRATION OF ECONOMIC POWER 



TabTjE 6-C. — Geograpnical and asset size distributions of the number of small 
furniture corporations in original 1926 sample, supplementary 1930 sample, 
identical 1926-36 sample, identical 1930-36 sample, and number of years before 
failure groups — Continued 



Area and asset size 1926 


1927 


1928 


1&29 


1930 


1931 


1932 1933 


1934 


1935 


1936 




Number of firms in identical 1930-36 sample— Continued 


WEST 

Less than $50,000... 
























$50,000 to $100,000 
























$100,000 to $150,000 


1 








i i 


1 


1 


1 


1 


1 


$150,000 to $200,000 


1 


1 


1 




$200,000 to $250,000 



















$250,000 and over 
















































Total 


1 


1 


1 


1 


1 


1 


1 


1 


1 


1 


1 






Grand total 


66 


66 


66 


66 


66 


66 


66 


66 


66 


66 


66 








Number of firms in identical 1930-36 sample 


NEW ENGLAND 
Less than $50,000. .. 






4 
2 

1 


4 
2 
1 


5 
2 


5 
1 

1 


5 
1 

1 


4 
2 


4 


$50,000 to $100,000 


1 "" 




2 


$100,000 to $150,000 










$150,000 to $200,000 








1 




$200,000 to $250,000 . . . 


















i 


$250,000 and over ^ . 












































Total 










7 


7 


7 


7 


7 


7 


7 














EAST 

Less than $50,000 










1 
3 


3 
1 


4 


4 


4 


4 


4 


$50,000 to $100,000 . 












$100 000 to $150 000 




















$150,000 to $200,000 
























$200,000 to $250,000 
























$250,000 and over 
















































Total 










4 


4 


4 


4 


4 


4 


4 


MIDDLE WEST 

Less than $50,000 










1 
2 


1 
3 


2 
2 
1 
3 


2 
2 

1 
1 
1 
1 


2 
2 

1 
2 

1 


2 
2 
1 
2 
1 


1 


$50,000 to $100,000 










3 


$100,000 to $150,000 . . 










1 


S150,000 to $200,000 










2 
3 


1 
3 




$200,000 to $250,000 










1 


$250,000 and over. . 










2 
























Total - 










8 


8 


8 


8 


8 


8 


8 














SOtTTH 

Less than $50,000 










2 
2 
2 


2 
2 
2 


3 

1 
2 
1 


3 
1 
2 


2 
2 
2 
1 


2 

2 

1 
1 
1 


1 


$50,000 to $100.000 










3 


$100,000 to $150,000 












$ 150,000 to $200,000 










2 


$200,000 to $250,000 










1 


1 




$250,000 and over 










1 


























Total 










7 


7 


7 


7 


7 


7 


7 














WEST 

Less than $50,000 
















1 


1 


1 


1 


$50,000 to $100,000 










1 


1 


1 




$100,000 to $150,000 •. 


















$150,000 to $200,000 












1 


1 


1 


1 


1 


1 


$200,000 to $250.000 










1 




$250,000 and over . ... 






































2 








Total . 










2 


2 


2 


2 


2 


2 














Grand total 


r 




28 1 28 1 28 


28 


28 


28 


28 








1 







CONCENTRATION OF ECONOMIC POWER 



289 



Table 6-C. — Geographical and asset size distributions of the number of small 
furniture corporations in original 1926 sample, supplementary 1980 sample, 
identical 1926-36 sample, identical 1930-36 sample, and number of years before 
failure groups — Continued 





Number of years before failure 


Area and asset size 


1 


,2 


3 


4 


5 


6 


7 


8 


9 


10 




Number of firms la years-before-failure groups 


NEW ENGLAND 


18 
6 


13 
6 
1 
1 
1 


11 
3 


8 6 
2 2 


2 

' 3 

1 










$50 000 to $100 000 ^ 


3 


3 






$100 000 to $150 000 






$150 000 to $200 000 




1 












$200 COO to $250 000 


1 














$250 000 and over 


































. 






Total 


25 


22 


15 


10 


8 


6 


3 


3 












EAST 

Less than $50,000 - 


30 
6 
3 
3 
1 


19 
6 
5 

1 
3 


16 
3 
5 
4 


11 
3 
3 
3 


7 
2 
2 
1 

1 


5 
1 
2 


2 
2 


2 
1 


1 

1 


1 


$50,000 to $100,000 .. 




$100 COO to $150 000 ' 


"* 


$150 000 to $200 000 








1 


$200 000 to $250 000 



















































Total - 


43 


34 


28 


20 


13 


8 


4 


3 


2 


2 






MIIDDLE WEST 

Less than $50,000 


26 
12 
5 
4 
1 
2 


19 
13 
6 
4 
2 
1 


11 
9 
5 
5 


5 
7 
6 
4 


3 

6 
4 

1 
1 


2 

6 
2 
2 

1 


1 

5 
2 
2 

1 


1 

3 

3 

...... 






$50,000 to $100,000 


1 




$100 000 to $150,000 ' 




$150,000 to $200,000 


1 
1 


1 


$200 000 to $250,000 






1 






















Total . 


.50 


45 


31 


22 


15 


13 


11 


8 


3 


1 






SOUTH 


12 
9 
1 
1 
3 
1 


7 
10 
2 
2 
2 
2 


t 

5 
2 
1 
4 


2 
4 
2 
2 
4 
2 


2 
3 
3 
3 

1 

1 


2 
2 
2 
3 

...... 










$50,000 to $100,000 ^ 


2- 

1 
3 
2 








$100 000 to $150,000 


1 
2 

1 






$150,000 to $200,000 


4 


2 


$200 000 to $250 000 




















Total — 


27 


25 


19 


16 


13 


10 


8 


4 


4 


2 


WEST 

Less than $50 000 


8 


4 
2 

1 

...... 


2 
2 


3 


1 












$50,000 to $100,000 












$100 000 to $150 000 




1 




1 


1 










$150,000 to $200,000 


2 

- 3 

1 


1 3 

1 

2 1 


1 








$200,000 to $250,000 . -. 


1 
1 


2 


1 






$250,000 and over 


















Total 


14 


10 


9 7 


4 


3 1 1 


1 






'irftnd total 


159 


136 


102 


75 


53 


40 1 27 


19 


9 


5 






i 





290 



CONCENTRATION OF ECONOMIC POWER 



Table 6-D. — Geographical and asset size distributions of the number of small stone 
clay products corporations in original 1926 sample, supplementary 1930 sample, and 
identical 1926-36 sample, identical 1930-36 sample, and numher-of-years-hefore- 
failure groups 



Area and asset size 


1926 


•1927 


1928 


1929 


1930 


1931 


1932 


1933 


1934 


1935 


1936 








Number of firms 


in original 1926 sample 






NEW ENGLAND 

Less than fSCOOO 


5 
8 
3 
2 
2 


3 
8 
3 
3 
1 


3 

7 
4 


2 
6 
6 


2 
6 
5 
1 


3 

7 
3 
1 


7 
3 
1 
1 


5 
2 
1 


4 
2 
1 


3 

1 
1 


4 


$50 000 to $100 000 




$100 000 to $150,000 


1 






$200 000 to $''50 000 


1 


1 


















































Total - 


20 


18 


15 


15 


14 


14 


12 


8 


7 


5 


5 


EAST 

Less than $50,000 -- 


9 
8 
5 
1 
2 


8 
9 
3 
2 
1 


7 
6 
4 
1 
1 


7 
6 
3 
1 


6 
7 
2 
1 


5 

7 
2 

1 


4 
5 
3 


4 
6 
1 


6 
3 
1 


5 
4 
1 


4 


$50 000 to $100,000 -. 


3 


$100 000 to $150,000 


1 


$160 000 to $''00 000 


























































Total - 


25 


23 


19 


17 


16 


15 


12 


11 


10 


10 


S 


MIDDLE WEST 

Less than $50,000 


28 
27 
11 
9 
9 


27 
25 
8 
12 
6 
2 


21 
22 
6 

7 
7 
4 


17 
19 

7 
8 
7 
3 


15 
19 
7 
6 
4 
4 


14 
16 
9 
5 
5 
1 


16 
14 
9 
4 
3 
1 


19 
12 

8 
3 

1 
3 


19 
13 

8 
1 

1 
2 


19 
14 

7 
1 

1 
2 


18 


$50 000 to $100,000 


12 


$100,000 to $150,000 .- - 


7 


$150 000 to $200,000 


1 


$200 000 to $250,000 --- 


1 


$250,000 and over .-- 


2 








Total 


84 


80 


67 


61 


55 


50 


47 


46 


44 


44 


41 


SOUTH 

Less than $50,000 


19 
11 
3 
6 


18 
9 
5 
5 


17 
9 
3 
5 


14 
7 
3 
4 


13 
7 
3 
3 


12 
4 
3 
3 


11 
2 
5 
1 


9 
2 
5 
1 


9 


9 




5 


$50 000 to $100 000 




$100,000 to $150,000 


5 


4 


4 


$150 000 tn $200 000 




$200 000 to $250,000 
























































Total 


38 


37 


34 


28 


26 


22 


19 


17 


14 


13 


9 






WEST 

Less than $50,000 


6 
6 
3 


7 
4 
3 


6 
4 
2 


6 
i 
2 
2 


4 
4 
2 
1 


5 
2 
2 

1 


5 
2 
2 


3 
2 
2 


3 
2 
2 


3 
2 
2 


3 


$50,000 to $100,000 


1 


$100 000 to $150,000 


3 


$150 000 to $200 000 




$200 000 to $250 000 


2 


2 


2 












$250 000 and over 










































Total . 


17 


16 


14 


14 


11 


10 


9 


7 


7 


7 


7 






Grand total.. 


184 


174 


149 


135 


122 


111 


99 


89 


82 


79 


70 














Numb 


3T of firms in 


supplementary 1930 sampl« 


) 




NEW ENGLAND 

Lcs than $50,000 










3 


3 


3 


3 


3 


3 

1 


3 


$50 000 to $100,000 










1 


$100,000 to $150,000 














1 


1 


1 




$150 000 to $200 000 










1 


1 




$200 000 to $250,000 




































































Total 










4 


4 


4 


4 


4 


4 


4 














EAST 

Less than $50,000 










1 

1 


1 
1 


2 


2 


2 


2 


2 


$50,000 to $100,000 












$100 000 to $150,000 




















$150,000 tp $200,000 
























$200,000 to $250,000 L 






















$250,000 and over 1 














































Total 










2 


2 


2 


2 


2 


2 


2 















CONCENTKATION OF EOUNOMIO POWER 



291 



Table 6-D. — Geographical and asset size distribulions of the number 0/ small stone 
clay -products corporations in original 1926 sample, supplementary 1930 sample, and 
identical 1926-36 sample, 'identical 1930-36 sample, and nnmber-of-years-before~ 
failure groups — Continued 



Area and asset size 


1926 


1927 


1928 


1929 


1930 


1 
1931 1 1932 


1933 


1934 


.1935 


1936 


MIDDLE WEST 

i'CSS than $50,000 


Number of firms in original 1926 sample— Continued 










7 
4 

5 
2 

1 


7 
4 
3 


9 
3 
2 


7 
4 
2 
2 


7 
6 
1 
2 


6 
4 
1 

1 
1 


6 


$50,000 to $100,000 - 










4 


$J0O 000 to $150,000 










1 


$150 000 to $200,000 










1 2 


1 


$200,000 to $260,000 




.- .: 




2 


1 


1 


$250 000 and over 
















Total 
































19 


17 


17 


16 


15 


13 


12 


SOUTH 

Less than $50,000 




















3 

2 


6 


4 


3 


2 


2 
1 


2- 


$60 000 to $100,000 










1 


$100 000 to $150,000 








'' 






1 
1 


1 

1 




$150,000 to $200,000 - 










3 


3 


3 


1 


1 


$200 000 to $250,000 












$260 000 and over - - - . 


















- — -p 






Total - - 
































8 


8 


7 


6 


4 


4 


4 


•WEST 

Less than $50,000 




















5 


6 

1 
1 


6 


4 


4 
1 
2 
1 


4 

I 
1 


4 


$50 000 to $100 000 - - 










1 


$106 000 to $160,000 








' 


2 


1 
1 

1 
1 


2 
2 


2 


$i5b',"oeo" to $200,000 ..- 










1 


$200 000 to $260 000 - - 










3 


3 






















Total 






























10 


10 


10 


8 


8 


8 


8 


Grand total . . 




















43 


41 


40 


34 


33 


31 


30 


NEW ENGLAND 

Less tbaEf$50,000 


















Number 


f firms in identical 1926-36 sample 








1 
...... 


-- 
3 


1 
...... 

1 


1 

1 
2 

1 


2 

2 

...... 


2 
2 

1 


2 
2 
1 


3 

1 
1 


4 


$60,000 to $100,000 


2 

1 


2 
1 

1 
1 




$100,000 to $160,000 - 


I 


$160 000 to $200 000 




$200,000 to $250,000 


2 


1 


1 










$260,000 and over 
















Total - 
























5 


5 


6 


6 


6 


6 


6 


5 


6 


6 


5 


EAST 

Less than $60,000 

$60,000 to $100,000 




3 
3 
1 
1 


3 
3 
1 

1 


3 
2 
2 

1 


3 
2 
2 

1 


3 
3 
1 

1 


2 

4 
1 

1 


2 
4 
2 


3 

4 

1 


4 
3 

1 


3 

4 

1 


4 
3 


$100,000 to $160,000 


1 


$150 000 to $200 000 




$200,000 to $250,000 












$260,000 and over 
























Total 
























8 


8 


8, 


8 


■ 8 


8 


8 


8 


8 


8 

18 

13 

6 

1 

1 
2 


8 


MIDDLE WEST 

Less than $50,000..- 




10 
15 
6 

7 
4 


9 

18 
2 

7 
4 

1 


8 
16 
5 
6 
5 
2 


7 

16 
6 
7 
5 
1 


10 
14 
6 
6 
2 
3 


11 
14 
8 
4 
4 


14 
13 
7 
4 
3 


18 
11 
6 
3 
1 
2 


18 

12 

7 

1 

1 
2 


18 


$60,000 to $100,000 


12 


$100,000 to $150,000 


7 


$160,000 to $200,000.— 


1 


$200,000 to $250,000 


1 


$260,000 and over 


2 


Total 










41 


4i- 


41 


41 


41 


41 


41 


41 


41 


41 


41 


SOUTH 

Less than $50,000 


4 
1 
1 
3 


4 
,1 
1 
3 


4 


4 


4 
1 
1 


4 
1 

1 
3 


5 


5 


5 


5 


5 


$50 QOO to $100 000 


1 1 




$ioo;oflO to $160.000 


1 
3 


1 
3 


3 

1 


3 
.1 


4 


4 


4 


$150 60O to $200 000 




$200,000 to $250 000 








$250,000 and over... 


























Total - 


9 


9 


9 


9 


9 


9 


9 


9 


9 


9 


9 



259845— 40— No. 



292 



CONCENTRATION OF ECONOMIC PQWER 



Table 6-D. — Geographical and asset size distributions of the number of smaU stone 
clay products corporations in original 1926 sample, supplementary 1930 sample, and 
identical 1926-36 sample, identical 1930-36 sample, and number-of-years-hefore- 
failwe groups — Continued 



Area and asset size 


1926 


1927 


1928 


1929 


1930 


1931 


1932 


1933 


1934 


1935 


1936 




Number of firms in identical 1926-36 sample— Continued 




WEST 

Less than $50,000 -i 


1 
3 
2 


2 
2 
2 


2 
2 
2 


2 
2 
2 
1 


2 
2 
2 

1 


3 
1 
2 
1 


3 
2 
2 


3 
2 
2 


3 
2 
2 


3 
2 
2 


3 


$.'50,000 to $100,000 


1 


$100 000 to $150,000 - 


3 


$150 000 to $200 000 




$200 000 to $250 000 


1 


1. 


1 






















































Total - - 


7 


7 


7 


7' 


7 


7 


7 


7 


7 


7 


7 


Grand total 


70 


70 


70 


70 


70 


70 


70 


70 


70 


70 


70 










Number of firms in identical* 1930-36 sample 






NEW ENGLAND 

Less than $50,000 








3 


3 3 


3 


3 


3 
1 


3 


$50 000 to $100 000 














1 


$100 000 to $150 000 














1 


1 


1 




$150 000 to $200 000 










1 


1 






$200,000 to $250,000 




















$250 000 and over 






^ 










































Total- - - 










4 


4 


4 


4 


4 


4 


4 














EAST 

Less than $50,000 , . - 










1 
1 


1 
1 


2 


2 


2 


2 


2 


$50 000 to $100,000 












$100 000 to $150 000 




















$150 000 to $200 000 
























$200 00O-$250 000 


J 






















$260 000 and over 
















































Total.^ --- 










2 


2 


2 


2 


2 


2 


2 


UIDDLE WEST 

Less than $50,000 










3 
3 
3 
2 

1 


3 
4 
3 

'""2 


5 
3 
2 

1 
1 


5 
3 
2 
2 


5 
4 
1 
2 


5 

4 
1 
1 

1 


5 


$50,000 to $100,000 ... 










4 


$100,000 to $150,000 










1 


$150,000 to $200,000 










1 


$200 000 to $250,000 










1 


$250,000 and ftver 








































Total 










12 


12 


12 


12 


12 


12 


12 


SOUTH 

Less than $50,000 










2 


2 


2 


2 


2 


2 

1 


2 


$50,000 to $100,000 










1 


^100 000 to $150,000 
















1 
1 


1 
1 




$150,000 to $200,000 




J 






2 


2 


2 


1 


1 


$200 000 to $250,000 












$250,000 and over . . 
















































Total 










4- 


4 


4 


4 


4 


4 


4 


WEST 

tess thin. $50,000 










4 


4 


4 


4 


4 
1 
2 

1 


4 

1 
2 

1 


4 


$50,000 to $100,000 










1 


$100,000 to $150,000 










1 


1 


1 
1 

1 
1, 


. 2 
2 


2 


$150,000 to $200,000 










1 


$200,000 to $250,000 










3 


3 












































Total 










8 


8 


8 


8 


8 


8 


8 






1 


1 




30 


30 


30 


30 


30 


30 


30 




1 1 V 











CONCENTRATION OF ECONOMIC POWER 



293 



Table 6-D. — Geographical and asset size distributions of the number of small stone 
clay products corporations in original 1926 sample, supplementary 1930 sample, and 
identical 1926-36 sample,, identical 1930-36 sample, and numher-of-years-bef ore- 
failure groups — Continued 



Area and asset size 






Number of years before failure 






1 


2 


3 


4 


5 


6 


7 


8 


8 


10 






Number of firms 


in years-before-failure groups 




NEW ENGLAND 

Less than $50,000 


9 
3 
2 
1 


6. 
4 
2 
1 


3 
6 
1 


2 
6 
2 


1 
6 


1 
6 


1 
5 
1 


1 
1 


1 




$50,000 to $100,000 




$100,000 to $150,000 


2 2 






$150 000 to $200 000 


1 


1 




$200,000 to $250,000 












$250,000 and over 












































Total 


15 


13 


10 


10 


9 


9 


7 


3 


2 








EAST 

Less t)mn $50.000 


9 
5 
1 

1 
1 


6 
5 
2 


3 
6 

1 


3 
3 
3 


4 
3 
1 


2 
3 
2 


2 
1 

1 


U 

1 

1 


1 

1 


1 


$50,000 to $100,000 


1 


$100,000 to $150,000 




$150,000 to $200,000 . . -- 






$200,000 to $250,000 


2 


I 
















$250,000 and over 


















17 




















Total 


15 


11 


9 


8 


7 


4 


3 


2 


2 






MIDDLE WEST 

Less than $50,000 


23 
10 
7 
3 
2 


19 

11 

8 

...... 

1 


15 
7 
4 
2 
1 
2 


11 
5 
4 

1 


7 
5 
1 
2 


4 
2 

2 

1 


2 

1 
1 

1 


1 
2 


2 


2 


$50,000 to $100,000 




$100,000 to $150,000 - 






$150,060 tO'$200,000 

$200,000 to $250,000 


1 
1 


1 
1 


1 


$250,000 and over 


2 


2 






48 








Total 


45 


31 


23 


17 


10 


6 


5 


4 


3 






SOUTH 

Less than $50,000 


23 
6 
2 
1 


20 
8 
3 
3 


16 
7 
3 
2 


12 
5 
2 
1 


9 
5 
3 

1 


5 
5 
2 
1 


4 
4 

1 
1 


2 
4 
2 


1 
3 
1 


2 


$50,000 to $100,000 . . 


2 


$100,000 to $150,000 




$150,000 to $200,000 












$250,000 and over... 












































Total 


32 


32 


28 


20 


18 


13 


10 


8 


5 


4 






WEST 

Less than $50,000 


10 


6 
3 
1 


5 
2 

1 


3 
3 


2 
2 


1 
2 


1 

1 








$50,000 to $100,000 . . . 








$100,000 to $150,000 


1 

1 








$160,000 to $200,000 
















$200,000 to $250,000 


1 


1 


1 














$250,000 and over 






































Total 


12 


11 


9 


7 


4 


3 


•2 


















Grand total 


124 


116 


89 


69 


56 


^2 1 29 


19 


. 13 


9 







294 



CONCENTRATION OF ECONOMIC PqWER 



Table 6-E. — Geographical and asset size distributions of the number of small ma- 
chine-tool corporations in original 1926 sample, supplementary 19S0 sample, iden- 
tical 1926-36 sample, identical 19S0~36 sample, and numher-of-years-bef ore-failure 
groups 



Area and asset size 


1926 


1927 


1928 


1929 


1930 


1931 


1932 1933 


1934 


1936 


1936 






Number of firms 


in original 1926 sample 






NEW ENGLAND 

Less than $50,000 


28 
6 

1 
1 

1 


26 
6 

1 
1 

1 


24 

4 
1 

1 
1 


22 

5 

1 
1 

1 


22 
6 
2 


22 
6 


20 18 


16 
5 


16 
5 


16 


$60,000^ to $100,000 

$100,000 to $150,000 


6 


6 


4 


$150,000 to $200,000 




1 


1 


1 


1 


1 


$200,000 to ^250,000 


1 


1 




$260,000 and over 







-:.::i-::::: 


















r " 








Total 


37 


34 


31 


30 


30 


29 


26 


24 


22 


22 


21 






EAST 

Less than $50,000 


16 
4 
1 
4 


15 
4 
2 
2 


12 

4 
2 
1 

1 
1 


11 

4 
3 

1 


9 

5 
2 

1 


10 
5 
2 


H 11 


9 
4 
2 


9 
4 
2 


8 


$50,000 to $100,000 


4 
2 


4 
2 


2 


$100,000 to $150,000- 


3 


$150,000 to $200,000 




$200,000 to $250,000 .. . 














$250,000 and over 




1 


2 


1 






























Total-- . 


25 


24 


21 


21 


18 


17 


17 


17 


15 


16 


13 






MIDDLE WEST 

Le^athan $50,000 


64 
29 
11 
9 
6 


60 
26 
11 
11 
6 


58 
19 
16 
11 
3 
1 


46 
29 
10 
11 


46 
23 
16 
9 
6 
2 


47 
24 
12 
13 


48 
23 


47 
21 


43 
21 
15 
7 
2 
1 


39 

17 

18 

6 

...... 


88 


$60,000 to $100,000- - 


16 


$100,000 to $150,000— 


15 1 14 


16 


$150,000 to $200,000- 


9 


8 
1 
1 


4 


$200,000 to $250.000 


5 


$260,000 and over... 


2 


1 


3 










TotaL.. 


118 


112 


108 


105 


102 


98 


96 


92 89 


83 


81 


SOUTH 

Less than $50,000 


1 


1 


1 


1 


1 


1 


1 


1 


1 


1 


1 


$50,000 to $100.000- 




$100,000 to $150,000 . . 
















:::::: :: :::: 






$*sfl»efle to $200,000... 
























$200,000 to $250,000 
























$260,000 and over 
















































Total 


1 


1 


1 


1 


1 


1 


1 


1 


1 


1 


1 






WEST 

Less than $50,000 


1 
3 


1 
3 














1 
1 


1 
1 


1 


$60,000 to $100,000.. 


1 
2 


1 
1 
1 


1 
1 


1 
1 


1 

1 


2 


1 


$100,000 to $150,000 




$150,000 to $200,000 














$200,000 to $250,000 ... 






















$250,000 and over 














































Total 


4 


4 


3 


3 


2 


2 2 


2 1 2 


2 


2 










Grand total. 


185 


175 


164 


160 


153 


147 


142 


136 


129 


123 


118 










Numbe 


r of flr 


ms in£ 


upplementary 1930 sample 






NEW ENGLAND 

Less than $50,000 










3 
...... 

2 
1 


3 

■ 1 
3 

1 
1 


3 3 
1 1 

4 4 
1 1 


3 
...... 

2 


6 
1- 
2 

1 


3 


$604)C0-to4100,000„.. „,„^.^.-...^. 
$100,000 to $150,000 


— — 








2 
1 


$150,000 to $200,000- 










1 


$200,000 to $250,000 












$250,000 and over 






















1 "" 




i 




Total 






1 


9 


9 


9 j 9 j 9 


9 


7 


EAST 

Less than $50,000 










3 


3 


2 


1 




1 


$50,000 to $100,000 














$100,000 to $150,000 






















$150,000 to $200,000 










1 


1 


1 


1 


1 




$200(000 to $250,000 










" 




$250,000 and over 








































Total 










4 


•4! 3 


2 


1 


1 































CONCENTRATION OF ECONOMIC POWER 



295 



Table &-E. — Geographical and asset size distributions of the number of small ma- 
chine-tool corporations in original 1926 sample, supplementary 1930 sample, iden- 
tical 1926-36 sample, identical 1930-36 sample, and number-of-years-before-failure 
groups — Continued 



Area and asset size 


1926 


1927 


1928 1929 

1 


1930 1931 


1932 


1933 


1934 


1935 


1936 






Number of firms in supplementary 1930 


sample— C ontinued 


MIDDLE -WEST 

Less than $50,000 










7 
5 
3 
2 

1 


5 

5 
2 
2 

1 


6 
5 
2 
1 


5 
5 
2 
1 


4 
6 
2 
1 


6 
4 
4 


5 


$50,000 to $100,000 










3 


$100,000 to $150,000 










5 


$150,000 to $200.000 












$200,000 to $250,000 












$250,000 and over 












































Total 










18 


15 


14 


13 


13 


13 


13 


SOUTH 

Less than $50,000 










2 


2 


2 


2 


2 


2 


2 


$50,000 to $100 000 












$100,000 to $1.')0,000 
























$1.50 000 to $200 000 
























$200,000 to $250 000 
























$250,000 and over 
















































Total 










2 


2 


2 


2 


2 


T 


2 


WEST 
























$50,000 to $100,000 










2 


2 


2 


2 


2 


2 


1 


$100 000 to $150 000 












$150 000 to $200 000 
























$200 000 to $250 000 
























$250,000 and over.-.'."-!.. .Ill- 
























Total 











2" 


2 


2 


2 


2 


2 


1 












35 


32 


30 


28 


27 


26 


2S 


















Number of firms in identical 1926- 


36 sample 






NEW ENGLAND 

Less than $50,000..- 


15 
4 

1 


16 
3 

1 


16 
3 

1 


14 
6 
1 


14 
5 

1 


14 
6 


15 
5 


15 
6 


16 

5 


15 
6 


16 


$50,000 to $100,000 


4 


$100 000 to $150 000 




$150 000 to $200 000 




1 


1 


1 


1 


1 


$200,000 to $250,000 

$250,000 and over 


1 


1 


1 


1 


i 


1 














Total 


21 


21 


21 


21 


21 


21 


21 


21 


21 


21 


21 


EAST 

Less than $50,000 


8 
2 
1 
2 


8 
2 
2 

1 


8- 
2 
2 

1 


7 
2 
3 
1 


7 
3 
2 

1 


8 
3 
2 


8 
3 
2 


8 
3 
2 


8 
3 
2 


8 
2 


8 


$50,000 to $100.000 -. 


2 


$100,000 to $150,000 


3 






$200 000 to $250000 














$250^000 and over... ...". 
























Total 


13 


13 


13 


13 


13 


13 


13 


13 


13 


13 


13 


MIDDLE WEST 

Loss than $50,000 j...^ 


40 

23 

8 

6 

4 


41 
19 
9 
9 
3 


38 
17 
14 
9 
3 


30 
26 
7 
10 
5 
3 


32 
20 
16 
7 
6 
2 


36 
20 
12 
11 


38 
20 
13 
9 


39 
19 
13 

8 
1 

1 


38 

19 

14 

7 

2 

1 


38 

17 

17 

6 

...... 


38 


$50,000 to $100,000 


16 


$100,000 to $150,000 


15 


$160,000 to $200,000 


4 


$200,000 to $250,000 


5 


$250,000 and over...... 


2 


1 


3 


Total 


81 


81 


81 


81 


81 
1 


hi 

1 


81 
1 


81 

1 


81 

1 


81 

1 


81 






SOUTH 

Le.ss than $50,000 


1 


1 


1 


1 


1 


$o0 000 to $100 000 




$100 000 to $150 000 
























$150000 to $200000 
























$200 000 to $250 000 
























$260',000 and o-v'er. '.'.'.'.'.'.'." ".'.'.'. 
























Total 


1 


i 1 


1 


1 


1 


1 


1 


1 


1 


1 








1 •- 


■ 

















296 



CONCENTKATIUN OF ECONOMIC POWER 



Table 6-E.^ — Geographical and asset size distributions of the number of small ma- 
chine-tool corporations in original 1926 sample, supplementary 1930 sample, iden- 
tical 1926-36 sample, identical 1930-36 sample, and number-of-years-before-failure 
groups — Continued 



Area and asset size 


1926 


1927 


1928 


1929 


1930 


1931 


1932 


1933 


1934 


1935 


193C 




Number of firms in original 1926 sample— Continued 


WEST 

LcRS than $50,000 














.... 
1 


.. ... 


1 
1 


I 

I 


1 


$60,000 to $100,000 

$100,000 to $ir)0,ooo 


2 


2 


1 

1 


1 

1 


1 
1 


1 
1 


1 


$150,000 to $200,000.. 














$200,000 to $250,000 
























$250,000 and over 




































2 












Total 


2 


2 


2 


2 


2 


2 


2 


2 


2 


2 






Grand total 


118 


118 


118 


118 


118 


118 


118 


118 


118 


118 


IIS 








Number of firms in identical 1930-36 sample 


NEW ENGLAND 

Less than $50,000 - . . 










3 


3 
1 
2 
1 


3 
1 

2 

1 


3 
1 
2 
1 


3 
...... 

1 


3 

I 
1 


3 


$50,(XK) to $100,000 












$100,000 to $150,000 










3 

1 


1 


$150,000 to $200,000 










1 


$200,000 to $250.000.. 












$250,000 and over 
















































Total .. 










7 


7 


7 


7 


7 


7 


7 














EAST— None 
























MIDDLE WEST 

Less than $50,000 .. 










4 
3 
3 
2 
1 


4 
4 
2 
2 
1 


6 

4 
2 

1 


5 
6 
2 

1 


4 
6 
2 
1 


6 
4 

4 


5 


$50,000 to $100,000 










3 


$100,000 to $150,000 










5 


$150,000 to $200,000 












$200,000 to $250,000 














$260,000 and over 















::r :::: 




























Total 










13 


13 


13 


13 


13 


13 


13 














SOUTH 

Less than $50,000 










2 


2 


2 


2 


2 


2 


2 


$60,000 to $100,000 












$100,000 to $150,000 
























$160,000 to $200,000 
























$200,000 to $250,000 
























$260,000 and over .. 
















































Total 










2 


2 


2 


2 


2 


2 


2 
















WEST 

Less than $50,000 . . 
























$60,000 to $100,000 










1 


1 


1 


1 


1 


1 


I 


$100 000 to $150,000 












$150 000 to $200,000 
























$200 000 to $250 000 
























$260 000 and over 
















































Total 










1 


1 


1 


1 


1 


1 


1 


,Qrand total 










23 


23 1 23 


23 


23 


2C 


23 














1 





CONCENTRATION OF ECONOMIC POWER 



297 



'1'able 6-E. — Geographical and asset size dislribuiions of the number of small ma- 
chine-tool corporations in original 1926 sample, supplemeniary 19^0 sample, iden- 
tical 1926-b6 sample, identical 1930-36 sample, and number-of-years-before-failure 
groups — Continued 









Number of years before failure 






Area and asset size 


1 


2 


3 


4 


5 


6 


7 


8 


9 


10 






Number of firms in years-before-failure groups 




NEW ENGLAND 

Less than $60,000 - -. 


17 


11 

1 
1 
2 


8 
1 
2 
1 


7 
1 
2 
1 


7 
1 

1 
1 
1 


7 

1 


6 


3 


1 


1 


iiV\ nnn to sino noo 




$100 000 to $150 000 


1 










$150 000 to $200 000 


1 











$200 000 to $250 000 












$250,000 and over -. 


















Total - 


18 


15 


12 


11 


11 


9 


6 


3 


1 


1 


EAST 

Less than $50,000 --- - 


12 
1 


11 
1 


6 
2 


5 
2 


2 
2 


2 

2 


2 
2 


2 
2 


1 
1 


1 


$50,000 to $100.000 --- 


1 


$100 000 to $150 000 




$150 000 to $200 000 


1 


1 


2 
1 


2 


2 


























2 


2 


1 




























Total 


16 


16 


11 


10 


6 


4 


4 


4 


2 


2 


MIDDLE WEST 

Less than $50,000 


30 

7 
4 


21 
6 
3 
3 


18 
5 
3 
2 


16 
5 

1 
1 
1 


14 
2 
2 
3 


9 
3 
2 
2 

1 


10 
2 
1 

1 


7 
3 


5 
2 


1 


$50,000 to $100,000 - 




$100 000 to $150 000 




$150 000 to $200 000 








$200 000 to $250 000 


, 1 




1 


1 


$260,000 and over 






1 


1 




Total 


42 


33 


•28 


24 


21 


17 


15 


11 


8 


2 


SOUTH— None 


















__._ 




WEST 

Less than $50 000 


1 
1 


1 
1 
1 




















2 


2 


1 


1 










$100 000 to $150 000 










$150 000 to $200 000 


1 






































$250,000 and over.. 






















Total 


3 


3 


2 


2 


1 


1 












79 


66 


sT 


47 


39 


"ir 


24 


18 


iT 


6- 








298 



CONCENTRATION OF ECONOMIC POWER 



S °"a 



I 

a 
3 
S 


1 


inaojaj 


1 e^io 00 


o 
o 


1 " 


o 
o 


1 




j 






i 


1 




1 








; i 

1 

■ 1 


S9IUt3(IniOO 


t^Tj*CC t^ II Ol ^ O O »0 iO 00 

t-TTM 2; ^2 2 2 


CO -^ CDCOCO ^ 


S 


jnaojaj 


1 o<Moo o j; tooio o ,11 

lOM-HOi-HOO O 1 ■' 


i! iiii i 


saiuBdnioo 
JO jaqoiTiM 




— 1 01003 
0> M JO 


■* C» OOO 00 


iOOSt)< N 1 OS j 




jneojaj 


-J< M M 


s 


"^'^ Sjl ; ; 1 ;| : : ; 




sainBdmoo 
JO jaqnin^^ 


c»os05it^M •♦ooo oot m oicoiin ooi-i« 


2 


1 

s 

a 

>, 
a 
"3 

§ 

a 
o 


CD 


!(n90j3<I 


rHMtCO --Wl-HOII 1 .1 1 r, 




1 . ! 

1 : 1 


s9inBcInioo 
jo'jaqtaTiM 




§1 oSS-^ 


(N II CD CO CO 1 CD -"^^ C^» 
O OS 




1 f^" 

o 




jnaojaj 


W CC<N 

CO "O—c 


O II —!«.«< 


O III 
O I.I 


il M 




; 1 


oa ■ 


saincdmoo 
JO J9qran>j 


gfeS 


lO II MCOt- 1 lO 

O M -H JO 


1 CO CO uo 


-^ 11 lO T)< N rl 1 IO 1 


i 

05 


^naoJDj 


f5SSi 


O COOOCOIO 1 i«|. Ill 
O IM » O 1 ' ' ' ,' ', ! 






sanredmoo 
JO aaqtnnN: 


— mojosi t^ooqjgiji ■<»■ c^ooioji ti'Wco 




S , 


•3 

3 


5S 
2 


?n30J9J 


t^ T-l O —00 3 




11 : i ; 




: 


cainBdraoo 
JO a8qran>i 


gft"- s 


C.'S,'^ 


2 II " '^^ 


d 


1 eo.*-*i-i 1 00 


i 


5U9aJ9<I 






1 i i ; IN 


sginednioo 
JO Jaqmn^ 


§§5S 


■"1 


r~ II (N NT)! CO 

S|| 3 - - 


COCOI^ffO 


CO 


i 


?n90J9<I 


c^atOi o 1 t^ to t- 


O 1 1 ' ' 1 ' II III 


i 


S9inEdaioo 
JO jaqnniN 


o >oo 
00 -"fee 


sl "2^ i 


OS ow 


lO CO-^ IO 


IS 


a 
3 

"3 

a 




}n90J9J 


OS o ^ o 
tC(N -^ O 


M" -< O O 1 1 1 . 
rt 00 O 1 II 




i 'i ; 


j 


S9Tnedaioo 
JO J9qninN 


S2* 


o 

CO 


^'^^ 


Sll s =°^ 


00 


1 lOr-lINN 


ff 


§ 


in90J9J 


S2J:: 1 § 11 SS'' 


s 


: : 


i 


M 1 11 i 


s9inBdraOD 
jo'j9qnin>j 


SSSi 3} Sg^ 


S 1 23 SI S-'»« 


s 


i 


3n90J9j 


g2?5 ,§j 


lO « M O 1 II 
1-1 00 O 111 


11 i i M 




sainBdmoo 
JO jgqninjsr 


gf5S 


S|| gg' || 1 S 22 S?l S""-" IS 


.1 

n 




ja90j0ci 


eccj « o 1 mn ■>»< o 
T(< lO O --1 00 , o 


1 ! ! 


i 


•Nil ; 


s9raBdtnoo 
jo'jgqninjsi 


COcDCO 00 11 Tt'O-'l* 


2 




« lO CO ■* >-< I 00 


i 


3tl90J9J 


OOCOCT) O II lOrH ■* 
•5< ■* O rHOO 


i ; i i 


: 




[ 


sgiuBdinoa 
JO J9qtnn>i 




00 II rrcow 


O ■* rt 


"l 


i 


5n9oj9j 


i-i COCO o 
■* ■* -H O 


00 ■•I* 00 O 1 II 1 II 1 1 t 1 1 . 
»-< t>- o 1 II ill 'I'll 


S9inBdraoo 
jo'jgqniTi^j 


SgS 


s "B^ 2 1 i "- s 


o«osw |g 








1 

St: 

® i: 

> 

.9 9 

.1! 

-38 

O h 

1 


o 

O 


<£ 
X. 

o 




■5 

•4-3 




.9 

1 

r 


•5 


1 

c 

O 

'Z, 




o 




.z 

■6 <- 

2 a 
Ml? 

.9 p 
go 


.ia 


6i 
C 

'S 

3 




c 

1c. 

a 




.9^ 

CO o 

"a 

On 

a o 


c/ 

C 

O 

9 
■>»' 

o 

CO 


1 

c 
o 

a 

cc 
o 


c 
o 




'a 

I 





a> 4) o 



03.2 

§•-1 
S^ - 

gS.9 
>- ca o 

O HCO 

a og 
coQ a 

^ So 



dsx?a 

-' S OS 
Qi-si-s 

« 3 a 

III 
<~ a)o 

sag 

o « « 
.3 9 

•- ffl o 






-99 



CONCENTKATION OP ECONOMIC POWER 



299 



Table 10-A. — Frequency distribution of companies by date of incorporation, by 
asset size and by date of failure for failing companies, for a sample of small baking 
corporations, 1926-36 





Number of firms showing date of incorporation 


Total 


As^et size mid date of faiiuro 


No diita 


Before lois-lQ 
1915 ^-^° ^^ 


■ 
1920-24 


1925-29 


1930 or 
later 


number 
of firms 


Less than $50,000: 

1927 or 1928 .... 


1 




10 
9 
5 
5 
5 


10 
5 

14 
3 
3 

18 




21 


1929 or 1930 




! 




15 


1931 or 1932 




1 


3 


24 


1933 or 1934 


1 


1 2 


12 


1935 or 1936 




4 




12 


Strrvived througli 1936 




7 


9 i 17 


1 


52 






' i 




Total 


2 


9 


17 


51 


53 


4 


136 






$50,000 to $99,999: 

1927 or 1928 . . 




1 
2 




2 


1 




4 


1929 or 1930 






1 1 
3 2 




4 


1931 or 1932 




1 


2 




8 


1933 or 1934 






1 
1 
3 




1 


1935 or 1936 






2 1 i 




4 


Survived through 1936 


5 


14 


6 


1 


29 


Total - 








9 


7 


22 


11 


1 


50 


$100,000 to $149,999: 
1927 or 1928 












1 







1 


1929 or 1930 














1931 or 1932 






1 


2 


1 




4 


1933 or 1934 










1935 or 1936 








1 
5 


1 
2 




2 


Survived through 1936 




2 


3 




12 










Total 




2 


4 


9 


4 




19 














$150,000 to $199,999: 
1927 or 1928 


1 






1 




2 


1929 or 1930 i 










1931 or 1932 i 1 




1 






2 


1933 or 1934 .. .. . 1 












1935 or 1936 




1 






i 




2 


Survived through 193C . .. 




3 


2 


1 


2 


1 


9 








Total 




6 


2 2 


4 


1 


15 






_. 




$200,008 to ^249,999: 
1927 or 1928 


1 








1929 or 1930 . . 


1 






1 

1 




2 


1931 or 1932 










1 


1933 or 1934 




2 






2 


1935 or 1936 






1 






1 


Survived through 1936 


2 


2 


1 






5 












Total 


3 


2 


3 3 






11 











300 



CONCENTRATION OF ECONOMIC POWER 



Table IQ-B. — Frequency distritnition of companies by date of incorporation, by 
asset size, and by date of failure for failing companies, for a sample of small men's 
clothing corporations, 1926—36 





Number of firms showing date of incorporation 


Total 


Asset size ai'.d date of failure 


No data 


Before 
1915 


1915-19 


1920-24 


192.V-29 


1930 or 
later 


number 
of firms 


T.ess than $50,000: 

1927 or 1928 ^ 






1 


17 

12 

3 

1 

2 

7 


10 
8 

20 
9 
4 
8 




28 


1929orl9'?0 




1 
2 
2 

1 
6 




21 


1931 or 1932 


1 


1 
1 


4 
4 


31 


1933 or 1934 


17 


1935 or 1936 




7 


Survived throuph 1936 




3 


6 


30 








Total 


1 


12 


6 


42 


59 


14 


134 






.$50,00u to $99,999: 
1927 or 1928 


1 




2 
2 


6 
3 

1 
3 


4 
3 
4 
5 
2 
6 




13 


1929 or 1930 






8 


1931 or 1932 




1 

1 


2 


8 


1933 or 1034 




1 
1 
5 


10 


1935 or 1936 






3 


Survived throuch 1936 




6 


5 


1 


22 








Total 


1 


7 


11 


18 


24 


3 


64 






$100,000 to $149,999: 
1927 or 1928 




1 




3 
5 
5 
1 


3 
2 
2 
1 

1 
4 




7 


1929 or 1930 


1 


2 




10 


1931 or 1932 




1 


8 


1933 or 1934 




1 




3 


1935 or 1936 




1 

1 


2 


Survived through 1936 




3 


3 




11 










Total - 


1 


5 


4 


17 


13 


1 


41 


$150,000 to $199,999: 
1927 or 1928 




1 
1 




1 
1 

1 
1 


1 
1 
2 




3 


1929 or 1930 








3 


1931 or 1932 






3 


1933 or 1934 




1 


1 




3 


1935 or 1936 










Survived through 1936 






1 


2 


2 


1 


6 










Total 




3 


2 


6 


6 


1 


18 








$200,000 to $249,999: 
1927 or 1928 
















1929 or 1930 






1 

1 


2 

1 


2 
2 
1 




5 


1931 or 1932 








4 


1933 or 1934 








1 


1935 or 1936 




1 






1 


2 


Survived through 1936 






2 


2 


4 














Tot«(l - 




1 


2 


5 


7 


1 


16 









CONCENTRATION OF ECONOMIC POWER 



301 



Table 10-C. — Frequency distribution of companies by date of incorporation, by 
asset size, and, by date of failure for failing companies, for a sample of small 
furniture corporations, 1926-36 





Number of Arms showing date of incorporation 


Total 


Assei size and date of failure 


No data 


Before 
1915 


1915-19 


1920-24 


1925-29 ^^^° °'" 


number 
of firms 


Less than $50,000: 








6 

8 
4 
1 

1 
12 


11 
2 

12 
4 
2 
6 




17 




1 


4 
3 

1 


2 

1 




17 


1931 or 1932 


1 


21 






6 








3 


Survived through 1936 




2 


1 


i 


22 


Total 


1 


10 


4 


32 


37 


2 


86 


$50,000 to $99,999: 






1 
2 
2 
2 


3 


3 
2 




7 










4 






3 

1 

1 

11 


5 
5 


i 


11 






2 


10 








1 


Survived through 1936 




2 


8 


5 


1 


27 


Total - — 




16 


9 


21 


12 


2 


60 


$100,000 to $149,999: 




2 
6 
2 
4 




2 
1 
3 


1 




5 




1 


i 




9 




2 




7 


1933 or 1934 - 








4 


1935 or 1936 

Survived through 1936 




3" 


7" 


" 6" 


-. 




18 


Total 


1 


17 


8 


12 


5 




43 


$160,000 to $199,999: 




2 
1 
2 




3 
3 

1 
1 
3 
5 


1 




6 




1 






5 










3 


1933 or 1934 








1 


2 
6 
17 


1935 or 1936..- 

Survived through 1936....- 




2 
9 


i 
2 


"i' 




Total 


1 


16 


3 


16 


2 


1 


39 


$200,000 to $249,999: 




2 






2 

1 
3 

1 




4 








2 






1931 or 1932... 




1 






4 
3 


1933 or 1934.... 






1 
2 






I 


Survived through 1936 




6 


1 


1 




10 






9 


4 


4 


8 




25 













302 



CONCENTRAl^ION OF ECONOMIC POWER 



Table 10-D. — Frequency distribution of com-panies by date of incorporation, by 
asset size, and by date of failure, for failing companies, for a sample of small stone 
and clay products corporations, 1926—36 





Number of firms showing date of incorporation 


Total 


Asset size and date of failure 


No data 


Before 
1915 


1915-19 


1920-24 


1925-29 


1930 or 
later 


number 
of firms 


Less than $50,000: 

1927 or 1928 - 




2 
3 
2 
3 
5 
17 


1 

1 
2 


6 
5 
7 
5 
2 
9 


9 
4 
5 
2 

1 
4 




18 


1929 or 1930.. 






13 


1931 or 1932 


1 




17 


1933 or 1934.. 




10 


1935 or 1936 




1 
4 




9 


Survived through 1936 






34 










Total 


1 


32 


9 


34 


25 




101 




. . 1. . -. 






$50,000 to $99,999: 

1927 or 1928 








2 
1 
4 


3 




5 


1929 or 1930 ... 




2 


4 
1 
1 
1 
1 




7 


1931 or 1932 




2 

1 




7 


1933 or 1934 




1 




3 


1935 or 1936 








1 


Survived through 1936 




9 


6 






16 












Total 




12 


8 


13 


6 




39 










$100,000 to $149,999: 
1927 or 1928 




2 


1 


4 






7 


1929 or 1930 










1931 or ]932_ 
















1933 or 1934 




1 

1 
6 




1 
1 
4 


1 




3 


1935 or 1936 . 








2 


Survived through 1936 




3 


3 




16 










Total 




10 


4 


10 


4 




28 










$150,000 to $199,999: 

1927 or 1928 


1 


1 
1 


1 


1 
2 






4 


1929 or 1930 






3 


1931 orl932_... 












1933 or 1934 
















1935 or 1936 
















Survived through 1936 






1 








1 














Total.. 


1 


2 


2 


3 






8 










$200,900 to $249,999: 

1927 or 1928 . 


1 












1 


1929or 1930_. 






2 






2 


1931 or 1932 . 






1 






1 


1933 or 1934 














1935 or 1936 
















Survived through 1936 






1 








1 
















Total 


1 




2 


2 






5 












$260,000 and over: 

1927 or 1928 
















1929 or 1930 ... 
















1931 or 1932... 
















1933 or 1934 








1 






1 


1935 or 1936 














Survived through 1936 


1 


1 










2 














Total 


1 


1 




1 






3 













CONCENTRATION OF ECONOMIC POWER 



303 



Table 10-E. — Frequency distribution of companies by date of incorporation, by asset 
size, and by date of failure for failing companies, for a sample of small machine 
tool corporations, 1926-36 





Number of firms showing date of incorporation 


Total 


Asset size and date of failure 


No data 


Before 
1915 


1915-19 


1920-24 


1925-29 


1930 or 
later 


number 
of firms 


Less than $50,000: 

1Q97 nr 1Q2S 






5 


5 


7 




17 


1929 or 1930 






2 2 1 




4 


1931 or 1932 






i 

2 


7 

5 

3 

33 


3 
3 

1 
12 


1 


12 






2 

1 

13 


12 


1 Q? "i nr 1 9SB 






5 


Survived through 1936. - - - 




14 


1 


73 








Total - -,— - 


16 


22 


55 28 


2 


123 


$50,000 to $99,999: 
1927 or 1928 






1 

1 


1 






2 


1929 or 1930 




1 
1 


1 

1 




3 


1931 or 1932 








2 


1933 or 1934 




1 
2 
8 


1 


1 


3 


1935 or 1936 






2 
3 


4 






15 


9 




35 










Total 




17 


13 


11 


7 


1 


40 


$100,000 to $149,999: 
1927 or 1928 










1 
1 




1 


1929 or 1930 




1 




1 




3 












1933 or 1934 
















1935 or 1936 




















6 


6 


2 


2 




16 










Total - - - 




7 


6 


3 


4 




20 


$150,000 to $199,999: 
1927 or 1928 




1 










1 


1929 or 1930 






1 
1 






1 


1931 or 1932 

1933 or 1934 


1 


i 
1 




i 




4 






1 


1935 or 1936 






1 
3 






1 






4 


4 


1 




12 












1 


7 


4 


6 


2 




20 


(200,000 to $249,999: 
1927 or 1928 
















1929 or 1930 
















1931 or 1932 
















1933 or 1934 
















1935 or 1936 




2 
6 










2 






■• 








d 
















Total 




8 










S 

















304 



CONCENTRATION OF ECONOMIC POWER 



Table 16- A. — Sample of small baking corporations doing business sometime during 
the period 1926-86, classified by size of ratio of economic income (or loss) to 
capital stock, and by asset size 





Number of firms and percentage of total showing- 






Asset size and year 


Loss of 5 

percent and 

over 


Less than 5 
percent loss 


Less than 5 

percent 

gain 


5 to 9.9 per- 
cent gain 


Gain of 10 

percent and 

over 


Total num- 
ber of firms 




Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber* 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


1926 
Less than $50,000 


45 
9 
3 
4 
4 
1 


44.6 
20.5 
21.4 
36.4 
30 8 
100.0 


7 
2 
3 


6.9 
4.5 
21.4 


7 

11 

1 

1 
3 


6.9 

25.0 

7.1 

9.1 

23.1 


13 

7 
1 


12.9 
15.9 
7.1 


29 
15 
6 
6 
4 


28.7 
34.1 
42.9 
54.5 
30.8 


101 
44 
14 
11 
13 
1 


JOO.O 


$50,000 to $100,000 


100.0 


$100,000 to $150,000 

$150,000 to $200,000 


99.9 
100 


$200,000 to $25(1,000 

$250,000 and over 


1 


7.7 


1 


7.7 


100.1 
100.0 










1 










Total 


66 
51 
15 


35.9 
48.6 
19.0 


13 

7 
6 


7.1 
6.7 
7.6 


23 
12 

11 


12. 5 22 
11.4 10 
13.9 12 


12.0 
9.5 
15.2 


60 
25 
35 


32.6 
23.8 
44.3 


184 
105 
79 


100.1 


Failures--. 

Survivors. 


100.0 
100.0 


1927 
Les"' than $50,000. 


36 
3 
1 
3 
2 
1 


42.9 
6.8 
9.1 
23.1 
18.2 


7 
3 
2 
1 


8.3 
6.8 
18.2 
7.7 


4 
8 
3 
1 
2 


4.8 
18.2 
27.3 

7.7 
18.2 


8 
5 
1 
1 

1 


9.6 
11.4 
9.1 
7.7 
9.1 


29 
25 
4 
7 
6 
2 


31.5 
66.8 
36.4 
53.8 
64.6 
50.0 


84 
44 
11 
13 
11 
4 


100.1 


$50,000 to $100,000 


100.0 


$100,000 to $150,000. 

$150,000 to $200,000. 

$200,000 to $250,000 


100.1 
100.0 
100 


$250,000 and over 


25.0 


1 


25.0 


100.0 








10.8 
10.3 
11.3 








Total 


46 
35 
11 


27.5 14 


8.4 
9.2 
7.5 


18 
9 
9 


16 
7 
9 


9. 6 73 


43.7 
32 2 
56.3 


167 

87 
80 


100.0 


Failures 

Survivors 


40.2 
13.8 


8 
6 


8.0 
11.3 


28 
45 


99.9 
100.2 


1928 
Less than $50,000 


37 
9 
2 
3 
5 
2 


46.8 
20.9 
15.4 
27.3 
50.0 
28.6 


6 
2 
1 
1 
3 
1 


7.6 
4.7 
7.7 
9.1 
30.0 
14.3 


7 
8 
1 
3 
1 


8.9 1 7 


8.9 


22 27.9 


79 
43 
13 
11 
10 
7 


100.1 


$50,000 to $100,000 


18.6 

7.7 

27.3 

10.0 


4 1 9.3 
4 j 30.8 


20 
5 
4 
1 
3 


46.6 
38.5 
38.4 
10.0 
42.9 


100.0 


$100,000 to $150,000 

$150,000 to $200,000 


100.1 
100.1 


$200,000 to $250,000 


1 


100.0 


$250,000 and over 


1 

5 
11 


14.3 


100.1 


Total 


58 
45 
13 


35.6 
54.2 
16.3 


14 
6 
8 


8.6 
7.2 
10.0 


20 
10 
10 


12.3 
12.1 
12.5 


9. 8 55 


33.7 
20.6 
47.5 


163 
83 
80 


100.0 


Failures 

Survivors 


6.0 
13.6 


17 
38 


100.0 
99.9 


1929 
Less than $50,000 


28 
4 


40.6 2 
10.3 4 


2.9 
10.3 
14.3 


4 

1 
1 
2 
1 
2 


6.8 4 
2.6 7 
7.1 1 
14.3 2 

14.3 

28.6 1 


6.8 
17.9 

7.1 
14.3 

14.3' 


31 
23 
9 
6 


44.9 
59.0 
64.3 
42 9 


69 
39 
14 
14 
7 
7 


100 


$60,000 to $100,000 


100.1 


$100,000 to $150,000 

$150,000 to $200,000 


1 
4 


7.1 
28.6 
28.6 
14.3 


2 


99.9 
100.1 


$200,000 to $250,000 i 2 


1 .. - 


4 57.2 
3 42.9 


100.1 


$250,000 and over 


1 


1 


100. 1 




1 


1 




Total 


40 
29 
11 


26.7 8 1 6.3 
41.4 1 7.1 

13.8 ! 3 1 3.8 


11 
4 
7 


7.3 

6.7 
8.8 


15 
5 
10 


10. 76 
7.1 27 
12. 5 49 


50.7 
38.6 
61.3 


150 
70 
80 


100.0 


Failures.- 

Survivors 


99.9 
100.2 


1930 
Less than $50,000 


34 
16 
4 
6 
1 
3 


38. 2 1 6 
32.7 1 5 
23. 5 1 2 


6.7 


I I 

fl 1 10 1 ; 10 


1 

1 
11.2 .10 1 3.3.7 


89 
49 
17 
19 
6 
6 


99.9' 


$50,000 to $100,000 .. 


10. 2 1 4 8. 2 1 
11.8 2 11 8 i 


8 16.3 16 1 32 7 1 


100 1 


$100,000 to $150,000 




9 ! 52.9 
5 1 26. 3 
3 j 50.0 
1 1 16.7 


100.0 


$1.50,000 to $200,000 

$200,000 to $250,000 


31.6 .1 ; 4 1 21.1 1 

16.7 1 16.7 1 , 16.7 1 


4 21.1 ; 


100.1 
100.1 


$2.50,000 and over 


50.0 1 16.- 


1 1 


i 1 16. 7 1 


100.1 




1 1 




1 




Total.. 

Failures 

Survivors 


64 1 34.4 15 1 8.1 1 20 
38 1 48. 1 7 1 8. 9 9 
26 1 24.3 8 1 7.5 11 


10.8 
11.4 
10.3 1 


23 
11 
12 


12.4 1 
13.9 i 
11.2 : 


64 1 
14 1 
50 1 


34. 4 186 

17. 7 79 
46. 7 107 


100.1 
100.0 
100.0 



CONCENTRATION OF ECONOMIC POWER 



305 



Table 16-A.- 



. -„ — . Sample of small baking corporations doing business sometime during 

the period 1926-36, classified by size of ratio of economic income (or loss) to 
capital stock, and by asset size — Continued 





Number of firms and percentage of total showing- 






Asset slM and year 


Loss of 5 

percent and 

over 


Less than 5 
percent loss 


Less than 5 ,,„ „„„ 
percent ^^^^i^^J' 
gain 1 cent gam 


Gain of 10 

percentand 

over 


Total num- 
ber of firms 




Num- 
ber 


Per- 
cent 


Num- Per- 
ber cent 


Num-' Per- 
ber 1 cent 

1 1 


Num- Per- 
ber cent 


Num- Per- 
ber cent 


Num 
ber 


Per- 
cent 


1931 
Less than $50,000 . . 


40 
11 
2 

5 
3 


1 

46.0 
29.7 
11.8 
43.8 
83.3 
60.0 


8 
7 
2 


9.2 
18.9 
11.8 


13 
7 
6 
3 
1 


1 

\ 
1 

14.9 
18.9 
35.3 
18.8 
16.7 


6 
1 


6.9 
2.7 


20 
11 
7 
4 


1 

23.0 
29.7 
41.2 
25.0 


87 
37 
17 
16 
6 
6 




$50,000 to $100,000 




$100,000 to $160,000 -.. 


99.9 
100.1 


$150,000 to $200.000 


2 1 19 ."; 


$200,000 to $250,000^ 










100.0 
100.0 


$250,000 and over 






1 


20.0 


1 


20.0 


Total 


68 
37 
31 


40.5 
59.6 
29.2 

61.5 
56.6 


17 
4 
13 


10.1 
6.4 
12.3 


30 
14 
16 


17.9 
22.6 
15.1 


10 
2 

8 


6.0 
3.2 
7.5 


43 

5 

38 


25.6 

8.1 

35.8 


168 
62 
106 




Failures 

Survivors. 


99.9 
99.9 


1932 
Less than $60,000 


51 
17 


11 
5 
2 
2 


13.3 
16.7 
12.5 
13.3 


11 

1 
1 
2 


13.3 
3.3 
6.3 

13.3 


2 
2 


2.4 
6.7 


8 
5 

1 
3 


9.6 
16.7 

6.3 
20.0 


83 
30 
16 
15 

1 
3 




$50,000 to $100.000 




$100,000 to $160,000 


12 1 75.0 


100.0 
100.1 
100.0 

100. a 

100.0 


$150,000 to .$200,000.. 

$200,000 to $260,000 


7 
1 
2 


46.7 
100.0 
66.7 


1 


6.7 


$250,000 and over 


1 


33.3 














Total.... 

Failures 


90 
30 
60 


60.8 
71.4 
56.6 


21 
6 
15 


14.2 
14.3 
14.2 


15 
4 
11 


10.1 
9.5 
10.4 


5 


3.4 


17 

2 

15 


11.5 
4.8 
14.2 


148 
42 
106 


1 100.0 

100.0 

1 100.1 


Survivors 


5 


4.7 


1933 
Less than $50,000 


33 
12 
5 
6 


44.6 
40.0 
29.4 
40.0 


21 
8 
5 
3 


28.4 
26.7 
29.4 
20.0 


7 
6 
2 
3 


9.5 
16.7 
11.8 
20.0 


4 
1 
1 
1 


5.4 
3.3 
5.9 
6.7 


9 
4 
4 
2 


12.2 
13.3 
23.5 
13.3 


74 
30 
17 
15 




$50,000 to $100,000 




$100,000 to $160,000 

$160,000 to $200,000 

$200,000 to $260.000 


100.0 
100. 
100. 


$250,000 and over 


i 


25.6 


i 


25.0 










2 


60.0 


4 


100. ft 


Total 

Failures.. 

Survivors 


57 
17 
40 


40.7 
53.1 
37.0 


38 

9 

20 


27.1 
28.1 
26.9 


17 
3 
14 


12.1 
9.4 
13.0 


2 
5 


5.0 
6.3 
4.6 


21 

1 

20 


15.0 
3.1 
18.5 


140 99. fr 
32 100. 
108 100. 


1934 
Less than $50,''00 .... 


38 
14 
6 
3 


52.8 
46.7 
30.0 
3.3.3 


18 
5 
5 
2 


26.0 
16.7 
25.0 
22.2 


11 
2 
2 
2 


15.3 
6.7 
10.0 
22.2 


1 
3 
3 


1 4 ^ 


5.6 
20.0 
20.0 
22.2 


72 
30 
20 
9 




$50,000 to $100,000.. 


10.0 
15.0 


6 
4 
2 




$100,000 to $150,000 

$150,000 to $200,000 

$200,000 to $250,000 


100. 1 
100.0- 
99.9 






$250,000 and over.... 


i 


33.3 










1 


33.3 


1 


3.3.3 


3 99.9 


Total 


62 
17 
45 


46.3 
63.0 
42.1 


30 

5 

25 


22.4 
18.5 
23.4 


17 
3 
14 


12.7 
11.1 
13.1 


8 
1 

.7 


6.0 
3.7 
6.5 


17 

1 

16 


12.7 
3.7 
15.0 




Failures. 

Survivors 


27 
107 


100.0 
100.1 


1935 

Less than $50,000 

$50,000 to $100,000 ■- . 


30 
8 
8 
3 


49.2 
28.6 
50.0 
.30.0 


9 
6 
2 
3 


14.8 
21.4 
12.5 
30.0 


9 
5 
2 

1 


14.8 
17.9 
12.5 
10.0 


2 
1 
2 
1 


3.3 
3.6 
12.6 
10.0 


11 

8 
2 
2 

1 


18.0 
28.6 
12.5 
20.0 
100.0 


61 
28 
10 
10 
1 
2 


100.1 


$100,000 to $150,000... 

$150,000 to $200,000 

$200,000 to $260,000 


100. 1 
100.0 
100.0 
100.0 
100.0 


$250,000 and over 






1 


50.0 


i 


50.0 






Total 

Failures 


49 

8 

41 


41.5 
61.5 
39.0 


21 
3 
18 


17.8 
23.1 
17.1 


18 

1 

17 


15.3 

7.7 
16.2 


6 

1 
5 


5.1 

7.7 
4.8 


24 


20. 3 


118 

13 

105 


100.0 
100.0 
100.0 


Survivors 


24 


22.9 


1936 
Less than $50,000 


].■; 


2fi .S 


11 
6 
1 
1 


19 6 


8 


14.3 
12.5 
7.7 
30.0 
100.0 


I 

2 


10.7 

8.3 

15.4 

20.0 


16 
8 
5 
3 


28.6 
33.3 
3.8.5 
30.0 


66 
24 
13 
10 
1 
2 

106 




$50,000 to $100,000 

$100,000 to $1 50,000 

$150,000 to $200,000.. 

$200,000 to $250.000 


5 20.8 i 
4 30.8 1 
1 10.0 i 


26.0 
7.7 
10.0 


3 

1 
3 
1 


99.9 
100.1 
100.0 
100. (. 
100. 


$250,000 and over 


. 1 


i 1 60.6 ( 


1 


50.0 
















Total 


26 23.6 


20 


18.9 1 


16 


15.1 


13 


12.3 


32 


30.2 




Failures 




Survivors ' 25 ' 23.6 ' 20 ' 18.9 ' 16 ' 15. 1 1 13 ' 12.3 1 


32 


36.2 


106 


100. 1 



306 



CONCENTRATION OF ECONOMIC POWER 



Table 16-B. — Sample of small men's clothing corporations doing business some- 
time dvring the period 1926-36, classified by size of ratio of economic income (or 
loss) to capital stock, and by asset size 







Number of firms and percentage of total showing- 






Asset size and year 


Loss of 5 

percent and 

over 


Less than 5 
percent loss 


Less than 5 

percent 

gain 


5 to 9.9 per- 
cent gain 


Gain of 10 

percent and 

over 


Total num- 
ber of firms 




Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


1926 
Less than $50,000 ..- 


44 
11 
11 
3 
2 


4.5.8 
22.5 
34.4 
20.0 
15.4 


9 
5 
2 
■ 1 
2 


9.4 
10.2 
6.3 
6.7 
15.4 


12 

17 
8 
6 
4 


12.5 
34.7 
25.0 
40.0 
30.8 


7 
5 
3 
3 

a 


7.3 
10.2 

9.4 
20.0 
15.4 


24 
11 
8 
2 
3 


25.0 
22.5 
25.0 
13.3 
23.1 


96 
49 
32 
15 
13 


100.0 


$50,000 to $100.000 


100.1 


$100,000 to $150,000 

$150,000 to $200,000 

$200,000 to $250,000.- 


100.1 
100.0 
100.1 




























Total --- 


71 

65 

6 


34.6 
41.9 
12.0 


19 
14 
5 

7 
7 
5 
1 

1 
1 


9.3 

9.0 
10.0 

8.2 
15.9 
15.6 

8.3 
14.3 
25.0 


47 
35 
12 

10 
13 
9 
4 
1 
2 


22.9 
22.6 
24.0 

11.8 
29.5 
28.1 
33.3 
14.3 
50.0 


20 
11 
9 

7 
4 
2 


9.8 

7.1 

18.0 

8.2 
9.1 
6.3 


48 
30 
18 

17 
11 
6 
2 
3 
1 


23.4 
19.4 
36.0 


205 
155 
60 


100.0 


Failures 

Survivors 


100.0 
100.0 


1927 
Less than $50,000 .- 


44 
9 

10 
5 
1 


.51.7 
20.5 
31.3 
41.7 
14.3 


20.0 
25.0 
18.8 
16.7 
42.9 
25.0 


85 
44 
32 
12 

7 
4 


99.9 


$.50,000 to $100.000 


100.0 


$100,000 to $150,000..- 

$150,000 to $200,000 

$200,000 to $250,000 


100.1 
100.0 


1 


14.3 


100.1 
100.0 














Total 


69 
56 
13 


37.5 
41.8 
26.0 


22 
16 
6 


12.0 
11.9 
12.0 


39 
26 
13 


21.2 
19.4 
26.0 


14 
10 
4 


7.6 
7.5 
8.0 


40 
26 
14 


21.7 
19.4 
28.0 


184 
134 
50 


100.0 


Failures-- 

Survivors 


100.0 
100.0 


1928 
Less than $50,000 ... 


25 
11 
8 
3 
2 


38.5 
26.8 
32.0 
30.0 
28.6 


2 

4 
2 
2 


3.1 

9.8 
8.0 
20.0 


12 
12 
9 
3 
2 
2 


18.5 
29.3 
36.0 
30.0 
28.6 
40.0 


9 

1 
2 

1 


13.8 
2.4 
8.0 

10.0 


17 
13 
4 
1 
3 
2 


26.2 
31.7 
16.0 
10.0 
42.9 
40.0 


65 
41 
25 
10 
7 
5 


100.1 


$50,000 to $100.000 


100.0 


$10C,000 to $1.50,000 

$1 50,000 to $200,000 

$200,000 to $250,000 


100.0 
100.0 
100.1 


1 


20.0 


100.0 














Total -- 


49 

45 

4 


32.0 

43.7 

8.0 


10 
7 
3 


6.5 
6.8 
6.0 


40 
22 

18 


26.1 
21.4 
36.0 


14 
9 
5 


9.2 

8.7 
10.0 


40 
20 
20 


26.1 
19.4 
40.0 


163 
103 
50 


99.9 


Failures--.. 

Survivors 


100.0 
100.0 


1929 
L<>.s,s than $50.000 


31 
5 
6 
3 
2 
1 


51.7 
16.1 
26.1 
42.9 
50.0 
12.5 


5 

7 
1 
1 
1 


8.3 
22.6 

4.3 
14.3 
25.0 


6 

7 
7 


10.0 
22.6 
30.4 


2 
2 
3 
3 


3.3 

6.5 

13.0 

42.9 


16 
10 
6 

3 


26.7 
32.3 
26.1 

25.6" 
37.5 


60 
31 
23 

7 
4 
8 


100.0 


$50,000 to $100.000-.- 


100.1 


$100,000 to $150,000 

$150,000 to $200,000 


99.9 
100.1 


$200,000 to $250.000 

$250 000 and over 






100.0 


3 


37.5 


1 


12.6 


100.0 










Total 


48 

39 

9 


36.1 
46.4 
18.4 


15 

8 
7 


11.3 
9.5 
14.3 


23 
14 
9 


17.3 
16.7 
18.4 


11 
6 
5 


8.3 
7.1 
10.2 


36 
17 
19 


27.1 
20.2 
38.8 


133 

84 
49 


100.1 


Failures 

Survivors 


99.9 
100.1 


1930 
Less than $50,000 


49 
19 
6 
4 
5 
1 


50.6 
41.3 
24.0 
44.4 
45.5 
100.0 


3 

11 
3 
1 

1 


3.1 
23.9 
12.0 
11.1 

9.1 


16 
7 
4 
2 
3 


16.5 
15.2 
16.0 
22.2 
27.3 


6 
6 
4 
2 


5.2 
13.0 
16.0 
22.2 


24 
3 

8 


24.7 

6.5 

32.0 


97 
46 
25 

9 
11 

1 


100.0 


$60,000 to $100.000 


99.9 


$100,000 to $150,000 

$150,000 to $200,000 


100.0 
99.9 


$200,000 to $250,000 


2 


18.2 


100.1 


$260,000 and over 






100.0 






















Total 


84 
57 
27 


44.4 
52.3 
33.8 


19 
11 
8 


10.1 
10.1 
10.0 


32 
16 

17 


16.9 
13.8 
21.3 


17 
7 
10 


9.0 
6.4 
12.5 


37 

19 
18 


19.6 
17.4 
22.6 


189 
109 
80 


100.0 


Failures 

Survivors 


100.0 
100.1 


1931 
Less than $50,000 


57 
26 
9 
3 
2 
2 


72.2 
56.3 
60.0 
42.9 
33.3 
100.0 


3 
5 


3.8 
10.6 


7 
12 
3 
2 
2 


8.9 
25.6 
20.0 
28.6 
33.3 


3 
2 

1 


3.8 
4.3 
6.7 


9 
2 
2 

1 


11.4 
4.3 
13.3 
14.3 


79 
47 
16 
7 
6 
2 


100.1 


$60,000 to $100,000 


100.0 


$100,000 to $150,000 


100.0 


$150,000 to $200,000 


1 
1 


14.3 
16.7 


100.1 


$200,000 to $260,000 . 


1 


16.7 


100.0 


$260,000 and over 






100.0 






















Total - 


99 
54 
45 


63.5 
69.2 
67.7 


10 
6 
6 


6.4 
6.4 
6.4 


26 
10 
16 


16.7 
12.8 
20.5 


7 
2 
5 


4,5 
2.6 
6.4 


14 

7 

7 


9.0 

u 


166 

78 
78 


100.1 


Fuilures--- 

Survivors 


100.0 
100.0 



CONCENTRATION OF ECONOMIC POWER 



307 



Table 16-B. — Sample of small men's clothing corporations doing business sometime 
during the period 1926-36, classified by size of ratio of economic income {or loss) 
to capital stock, and by agset size — Continued 





Number of firms and percentage of total showing- 






Asset size and year 


Loss of 5 

percent and 

over 


Less than 5 
percent loss 


Less than 6 

percent 

gain 


5 to 9.9 per- 
cent gain 


Gain of 10 

percent and 

over 


Total num- 
ber of firms 




Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


1932 

Less than $50,000 


62 
23 
3 
3 
2 


77.5 
67.6 
37.5 
50.0 
50.0 


11 
5 
3 
1 
2 


13.8 
14.7 
37.5 
16.7 
50.0 


1 

4 

1 
2 


1.3 
11.8 
12.5 
33.3 


2 

1 
1 


2.6 
2.9 
12.6 


4 
1 


5.0 
2.9 


80 
34 
8 
6 
4 


100 1 


$50,000 to $100,000 


09 9 


$100,000 to $150,000 


100.0 


$160,000 to $200,000 






100.0 


$200,000 to $250,000 










100.0 


$250,000 and over 










































Total 


93 
42 
51 


70.4 
77.8 
65.4 


?2 
6 
17 


16.7. 
9.3 
21.8 


8 
2 
6 


6.1 
3.7 

7.7 


4 
2 
2 


3.0 
3.7 
2.6 


5 
3 
2 


3.8 
6.6 
2.6 


132 

54 

78 


100 


Failures _ 

Survivors.- 


100.1 
100.1 


1933 
Less than $50,000 ... - 


32 
10 


49.2 
33.3 


14 
4 

1 


21.6 
13.3 
12.5 


12 
10 
2 
1 
2 
3 


18.5 
33.3 
25.0 
16.7 
100.0 
75.0 


2 
3 
2 
2 


3.1 
10.0 
2.5.0 
33.3 


5 
3 
3 

I 


7.7 
10.0 
37.6 
16.7 


65 
30 
8 
6 
2 
4 


100 V, 


$50,000 to $100,000 


99 9 


$100,000 to $150,000 


100.0 


$150,000 to $200,000 


2 


33.3 


100.0 


$200,000 to $250,000 






100.0 


$250,000 and over 














1 


25.0 


100.0 


















Total 

Failures .. 

Survivors 


44 
25 
19 


38.3 
65.8 
24.7 


19 
3 
16 


16.5 

7.9 

.20.8 


30 
6 
24 


26.1 
15.8 
31.2 


9 
2 

7 


7.8 
5.3 
9.1 


13 
2 
11 


11.3 
5.3 
14.3 


115 
38 
77 


100.0 
100.1 
100.1 


1934 
Less than $50,000 


23 
10 
2 

1 


46.0 
33.3 
33.3 
16.7 


12 

7 


24.0 
23.3 


10 
11 
2 

1 


20.0 
36.7 
33.3 
16.7 


1 
2 

1 


2.0 
6.7 
16.7 


4 


8.0 


50 
30 
6 
6 
1 
4 


100.0 


$50,000 to $100,000 


100.0 


$100,000 to $150,000 


1 
3 


16.7 
50.0 


100.0 


$150,000 to $200,000 


1 


16.7 


100 1 


$200,000 to $250,000 


i 

1 


ioo.o 

25.0 


100.0 


$250,000 and over 










3 


75.0 






100.0 


















Total.. 


36 
14 
22 


37.1 
73.6 
28.2 


20 
3 
17 


20.6 
15.8 
21.8 


27 

1 
26 


27.8 

5.3 

33.3 


6 


6.2 


8 
1 

7 


8.2 
5.3 
9.0 


97 
19 

78 


99 9 


Failures 


100.0 


Survivors. 


6 


7.7 


100.0 


1935 
Less than $50,000 


18 
5 

1 


39 1 
21.7 
12.5 


16 
9 
3 


34.8 
39.1 
37.5 


9 

5 
4 
2 


19.6 
21.7 
50.0 
66.7 


1 
2 


2.2 

8.7 


2 
2 


4.3 

8.7 


46 
23 
8 
3 
6 
4 


100.0 


$50,000 to $100,000 


99.9 


$100,000 to $150,000 


10(3.0 


$150,000 to $200,000 


1 


33.3 






100.0 


$200,000 to $250,000........ 






1 


i6.7 


5 

1 


83.4 
25.0 


100.1 


$250,000 and over 






2 


50.0 


1 


25.0 


100.0 














Total 


24 
6 
18 


26.7 
50.0 
23.1 


29 
4 
25 


32.2 
33.3 
32.1 


22 

1 

21 


24.4 
8.3 
26.9 


6 

1 
4 


5.6 
8.3 
5.1 


10 


11.1 


90 
12 

78 


100.0 


Failures 


99.9 


Survivors 


10 


12.8 


100.0 


1936 

Less than $50,000.. . . 


7 
6 


18.4 
35.3 


13 
3 
2 


34.2 
17.6 
22.2 


12 

8 
6 
1 

1 
2 


31.6 
47.1 
66.7 
33.3 
16.7 
33.3 


5 


13.2 


1 


2.6 


38 
17 
9 
3 
6 
6 


100.0 


$50,000 to $100,000 


]00.i) 


$100,000 to $150,000 






1 
1 
4 
2 


11.1 
33.3 
66.7 
33.3 


100.0 


$150,000 to $200,000 


1 


33.3 






99.9 


$200,000 to $250,000 


1 
1 


%16. 7 
;6.7 






100. 1 


$250,000 and over 






1 


16.7 


100.0 










Total 


14 


17.7 


20 


25.3 


30 


38.0 


6 


7.6 


9 


11.4 


79 


100.0 


Failures 




Survivors.. 


14 


17.7 


20 


25.3 


30 


38.0 


6 


7.6 


9 


11.4 


79 


ICO.O 



2C9845 — 40- 



308 



CONCENTRATION OF ECONOMIC PqWER 



Table 16-C. — Sample of small furniture corporations doing business sometime 
during the period 1926-36, classified by size of ratio of economic income (or loss) 
to capital stock, and by asset size 





Number of firms and percentage of total showing- 






Asset size and year 


Loss of 5 

percent and 

over 


Less than 5 
percent loss 


Less than 5 

percent 

gain 


6 to 9.9 per- 
cent gain 


Gain of 10 

percent and 

over 


Total num- 
ber of firms 




Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


1926 
Less than $50,000 


21 
12 
14 
9 
3 


33.3 
28.6 
37.8 
23.1 
15.8 


4 
5 
2 
2 
3 


6.3 
11.9 
5.4 
6.1 
16.8 


3 
3 
4 
5 
4 


4.8 

7.1 

10.8 

12.8 

21.1 


5 
4 
2 
6 
4 


7.9 
9.6 
6.4 
12.8 
21.1 


30 
18 
15 
18 
5 


47.6 
42.9 
40.5 
46.2 
26.3 


63 
42 
37 
39 
19 


99.9 


$50,000 to $100,000 


100.0 


$100,000 to $1')0,000 

$150,000 to $200,000 

$200,000 to $250,000 

$250,000 and over 


99.9 
100.0 
100.1 


Total 


59 

47 
12 


29.5 
36.2 
17.1 


16 
14 
2 


8.0 
10.8 
2.9 


19 
10 
9 


9.5 
7.7 
12.9 


20 
13 

7 


10.0 
10.0 
10.0 


86 
46 
40, 


43.0 
3.5.4 
57.1 


200 
130 
70 


100.0 


Failures 

Survivors 


100.1 
100.0 


1027 
Less than $50,000.. 


25 
21 
8 

7 


46.3 
38.9 
33.3 
22.6 


3 
6 


6.6 
11.1 


6 
8 
6 
4 
2 


11.1 
14.8 
25.0 
12.9 
25.0 


3 
2 
2 
2 
2 
2 


5.6 
3.7 
8.3 
6.5 
26.0 
15.4 


17 
17 
8 
16 
4 
1 


31.5 
31.5 
33.3 
61.6 
50.0 
7.7 


54 
54 
24 
31 
8 
13 


100.1 


$50,000 to $100,000 


100.0 


$100,000 to $150,000 


99.9 


$150,000 to $200,000 

$200,000 to $250,000 . 


2 


6.5 


100.1 
100.0 


$250,000 and over . 


6 


46.2 


4 


30.8 


100.1 


TMal 


67 
53 
14 


36.4 
46.5 
20.0 


16 
9 


8.2 
7.9 
8.5 


26 
13 
13 


14.1 
11.4 
18.6 


13 
8 
6 


7.1 
7.0 
7.1 


63 
31 
32 


34.2 
27.2 
46.7 


184 
114 
70 


100.0 


Failures 

Survivors 


100.0 
99.9 


1928 
Less than $50,000 . . 


29 
19 
9 
8 
6 
4 


56.9 
46.3 
40.9 
36.4 
40.0 
33.3 






6 
5 
2 
2 

1 
3 


11.8 
12.2 
9.1 
9.1 
6.7 
25.0 


6 
4 
2 
2 

4 


11.8 
9.8 
9.1 
9.1 

26.7 


10 
12 
8 
8 
4 
4 


19.6 
29.3 
36.4 
36.4 
26.7 
33.3 


51 
41 
22 
22 
15 
12 


100.1 


$50,000 to $100,000 


1 

1 

2 


2.4 
4.5 
9.1 


100.0 


$100,000 to $150,000... 

$150,000 to $200,000 ... 

$200,000 to $250,000 


100.0 
100.1 
100 1 


$250,000 and over. 


1 


8.3 


99.9 


Total... 


75 
62 
23 


46.0 
55.9 
32.9 


6 
4 

1 


3.1 
4.3 
1.4 


19 
7 
12 


11.7 
7.5 
17.1 


18 
9 
9 


11.0 
9.7 
12.9 


46 
21 
25 


28.2 
22.6 
35.7 


163 
93 
70 


100.0 


Failures 

Survivors.. 


100.0 
100.0 


1929 
Less than $50,000 


15 
12 
6 
4 
5 
3 


37.5 
32.4 
27.3 
18.2 
33.3 
33.3 


1 


2.6 


7 
7 
4 
6 
1 
3 


17.5 
18.9 
18.2 
27.3 
6.7 
33.3 


4 
4 
4 
4 
3 
1 


10.0 
10.8 
18.2 
18.2 
20.0 
11.1 


13 

14 
6 
5 
4 
2 


32.5 
37.8 
27.3 
22.7 
26.7 
22.2 


40 
37 
22 

?! 

9 


100.0 


$50,000 to $100,000. 


99.9 


$100,000 to $150,000 

$150,000 to $200,000 

$200,000 to $250,000 

$260,000 and over 


2 
3 
2 


9.1 
13.6 
13.3 


100.1 

100.0 

•100.0 

99.9 










Total. 


45 
35 
10 


31.0 
46.7 
14.3 


8 
3 

6 


5.5 
4.0 
7.1 


28 
13 
15 


19.3 
17.3 
21.4 


20 

7 

13 


13.8 
9.3 
18.6 


44 
17 
27 


30.3 
22.7 
38.6 


145 
76 
70 


99.9 


Failures. 

Survivors 


100.0 
100.0 


1930 
L«ss than $50,000 


37 
30 
20 
13 
7 
4 


59.6 
60.0 
60.7 
54.1 
50.0 
80.0 


5 
4 
4 
3 
2 
1 


8.1 
8.0 
12.1 
12.5 
14.3 
20.0 


5 
8 

1 
3 
2 


8.1 
16.0 

3.0 
12.5 
14.3 


4 
6 
2 
1 
3 


6.4 
10.0 
6.1 
4.2 
21.4 


11 
3 

6 
4 


17.7 
6.0 
18.2 
16.7 


62 
50 
33 
24 
14 
5 


99.9 


$50,000 to $100,000 . 


100 


$100,000 to $150.000 

$150,000 to $200,000 

$200,000 to $250,000 


100.1 
100.0 
100.0 


$250,«00! and over 






100.0 


tVjtal 


111 
66 
45 


59.1 
77.6 
43.7 


19 
4 
15 


10.1 
4.7 
14.6 


19 
4 

15 


10.1 
4.7 
14.6 


15 
6 
10 


8.0 
5.9 
9.7 


24 
6 
18 


12.8 
7.1 
17.6 


188 
85 
103 


100.1 


Failures.. 

Survivors... 


100.0 
100.1 


1931 
Less than $50,000 


46 

43 

10 

6 

4 

2 


75.4 
79.6 
40.0 
40.0 
36.4 
66.7 


1 
4 
3 
2 
2 


1.6 
7.4 
12.0 
13.3 
18.2 


3 

4 
5 
3 
3 
1 


4.9 
7.4 
20.0 
20.0 
27.3 
33.3 


6 
1 
4 
2 
1 


9.8 
1.9 
16.0 
13.3 
9.1 


5 
2 
3 
2 
1 


8.2 
3.7 
12.0 
13.3 
9.1 


61 
64 
26 
15 
11 
3 


99.9 


$50,000 to $100,000. . . . 


100.0 


$100,000 to $150,000 

$150,000 to $200,000 

$200,000 to $250,000 

$250,000 and over 


100.0 
99.9 
100.1 
100.0 




















Total 


111 

66 
55 


65.7 
84,8 
53.4 


12 
2 
10 


7.1 
3.0 
9.7 


19 

1 

18 


11.2 

1.5 

17.6 


14 
4 
10 


8.3 
6.1 
9.7 


13 
3 
10 


7.7 
4.6 
9.7 


169 
66 
103 


100.0 


Failures 

Survivors. 


99.9 
100.0 



CONCENTRATION OF ECONOMIC POWER 



309 



Table 16-C. — Sample of small furniture corporations doing business sometime 
during the period 1926-S6, classified by size of ratio of economic income (or loss) 
to capital stock, and by asset size — Continued 





Number of firms and percentage of total showing- 






Asset size and year 


Loss of 6 

percent and 

over 


! 

Less than 5 
percent loss 


Less than 6 

percent 

gain 


5 to 9.9 per- 
cent gain 


Gain of 10 

percent and 

over 


Total num- 
ber of flrma 




Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


Num- 
.ber 


Per- 
cent 


Num- 
ber 


Per- 
cent 


1932 
Less than $50,000 


54 
36 
16 
10 
1 
1 


88.5 
83.3 
84.2 
58.9 
50.0 
100.0 


4 
4 
1 
2 


6.6 

6.3 
11.8 


3 

1 
1 
3 

1 


4.9 

2.4 

6.3 

17.6 

60.0 










61 
42 
19 
17 
2 
1 


100.0 


$60,000 to $100,000- - - - 




2 

1 
2 


4.8 
5.3 
11.8 


100.0 


$100,000 to $150,000 

$150,000 to $200,000 

$200,000 to $250,000. 

$250,000 and over. 






100 1 






100.1 






100.0 














100.0 






















Total 


117 
37 
80 


82.4 
88.1 
80.0 


11 
3 

8 


7.7 
7.1 
8.0 


9 

2 
7 


6.3 
4.8 
7.0 






6 


3.5 


142 
42 
100 


99 9 


Failures 






100.0 


Survivors 






6 


6.0 


100 










1933 
Less than $50,000 


35 

16 
9 

1 


60.3 

48.5 

52.9 

8.3 


12 
9 
1 
3 


20.7 
27.3 
6.9 
26.0 


8 
3 

4 
2 

1 
1 


13.8 
9.1 
23.5 
16.7 
25.0 
33.3 


1 
1 


1.7 
3.0 


2 
4 
3 
3 
3 
1 


3.4 
12.1 
17.6 
25.0 
75.0 
33.3 


68 
33 
17 
12 
4 
3 


99.9 
100 


$50 000 to $100,000 


$100,000 to $150,000 

$150,000 to $200,000 

$200,000 to $250,000 .-^ . 


99 9 


3 


25.0 


100.0 
100 


$250,00 and over 


1 


33.3 










99 9 














Total 


62 
16 
46 


48.8 
61.5 
46.6 


25 
6 
19 


19.7 
23.1 
A8.8 


19 


15.0 


5 
1 
4 


3.9 
3.8 
4.0 


16 
3 
13 


12.6 
11.6 
12.9 


127 
26 
101 


100 


FaUures 


99 9 


Survivors 


19 


18.8 


100.0 


1034 

Less than $50,000. 

$60,000 to $100,000... 


24 
11 
4 
2 

1 
1 


49.0 
33.4 
28.6 
18.2 
25.0 
100.0 


18 
12 
3 
2 

1 


36.7 
36.4 
21.4 
18.2 
25.0 


4 
6 
3 
3 


8.2 
15.2 
21.4 
27.3 


1 
3 
2 
2 
2 


2.0 

9.1 

14.3 

18.2 

60.0 


2 
2 
2 
2 


4.1 
6.1 
14.3 
18.2 


49 
33 
14 
11 
4 
1 


100.0 
100.2 
100.0 
100.1 
100 


$100,000 to $150,000 

$150,000 to $200,000.. 

$200,000 to $250,000 


$260,000 and over 










100 






















Total 


43 

7 
36 


38.4 
68.3 
36.0 


36 
3 
33 


32.1 
25.0 
33.0 


15 

1 
14 


13.4 
8.3 
14.0 


10 
1 
9 


8.9 
8.3 
9.0 


8 


7.1 


112 

12 

100 


99.9 
99.9 


Failures 


Survivors 


8 


8.0 


100.0 


1935 
Less than $50,000 


23 
10 
2 

1 
1 
1 


48.9 
35.7 
18.2 
8.3 
12.5 
100.0 


10 
6 
1 

4 


21.3 
21.4 
9.1 
33.3 


8 
6 
6 
2 
3 


17.0 
21.4 
45.5 
16.7 
37.6 


2 
2 
2 
1 


4.3 
7.1 
18.2 
8.3 


4 
4 
1 
4 
4 


8.6 
14.3 

9.1 
33.3 
60.0 


47 
28 
11 
12 
8 
1 


100.0 
99.9 

100.1 
99.9 

100 


$50,000 to $100,000 


$100,000 to $150,000 

$160,000 to $200,000 

$200,000 to $250,000 


$260,000 and over 






100 






















Total-.- 

Failures 


38 

3 

35 

16 

4 

1 


36.6 
50.0 
34.7 

39.0 
13.8 
11.1 


21 

1 
20 

10 

7 


19.6 
16.7 
19.8 

24.4 
24.1 


24 

1 
23 

9 

7 
3 
2 

1 
3 


22.4 
16.7 
22.8 

22.0 
24.1 
33.3 
20.0 
16.7 
80.0 


7 


6.6 


17 

1 

16 

4 

7 
2 

6 

1 
2 


16.9 
16.7 
16.8 

9.8 
24.1 
22.2 
60.0 
16.7 
33 3 


107 

6 

101 

41 
29 
9 
10 
6 
6 


99.9 
100 1 


Survivors 

1936 
Less than $50,000 


7 

2 
4 
3 
2 
2 
1 


6.9 

4.9 
13.8 
33.3 
20.0 
33.3 
16.7 


100.0 

loai 

99 9 


$60i000 to $100,000 


$100,000 to $150,000 


99 9 


$160,000 to $200,000- 






100 


$200,000 to $250,000 

$250,000 and over ... 


1 


16.7 


i 


16.7 


100.1 
100 






1 




Total 


22 


21.8 


18 


17.8 


26 


24.8 


14 


13.9 


22 


21.8 


101 


100 1 


Failures 1.. 




Survivors 


22 


21.8 


18 


17.8 


25 


24.8 


14 


13.9 


22 21.8 


101 


100.1 



aio 



CONCENTRATION OF ECONOMIC POWER 



Table 16-D. — Sample of small stone and clay products corporations doing business 
sometime during the period 1926 to 19S6, classified by size of ratio of economic 
income (or loss) to capital stock, and by asset size 





Number of firms and percentage of total showing- 






Asset size and year 


Loss of 6 

percent and 

over 


Less than